By IFCMarkets
NonFarm – trader’s day
Here we consider the USD/CAD currency pair on the H4 chart. The price is moving upwards within the W1, D1 and H4 price channel: bullish trend is observed for all the timeframe scales. ParabolicSAR historical values confirm the H4 trend line and cross the lower boundary of Donchian Channel. The last candlestick bar broke the upper triangle side, indicating a new bullish momentum. It is better to wait for a confirmatory signal on the part of the RSI-Bars oscillator: the resistance breakout at 64.8927%. We believe that this signal would coincide with the price level intersection at 1.14245. This mark can be used for opening a pending buy order. The necessary price fluctuations will likely to appear after the Non-Farm Payrolls release at 14:30 CET. Stop Loss is recommended to be placed at the Donchian Channel lower boundary 1.13181, strengthened by Parabolic historical values and the Bill Williams fractal.
After position opening, Stop Loss is to be moved after the Parabolic values, near the next fractal low. Updating is enough to be done every day after a new Bill Williams fractal formation (5 candlesticks). Thus, we are changing the probable profit/loss ratio to the breakeven point.
| Position | Buy |
| Buy stop | above 1.14245 |
| Stop loss | below 1.13181 |
Dear traders. For the detailed report of the strategy based on analytical issues of technical analysis click here.
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