EURCAD H1 Bullish Crab Pattern - 7 July 2011

7 July 2011

Bullish Crab Pattern On EURCAD Hourly Chart.

This pattern is validate by 0.618 retracement of XA at B point and 0.382AB at C point.

PRZ is define by convergence of 1.618AB=CD and 3.618BC at 1.3700 and being complement by 1.618XA for lower limit in the PRZ.

Trade Details :
Entry : 1.3744
SL    : 1.3630 (114 pips)
Target 1 : 1.3850 (106 pips)
Target 2 : 1.3970 (226 pips)

I had entered this trade a little late as i'm waiting for price action to test 1.618XA. Price action manage to decline until 1.3660 about 15 pips from 1.618XA at the D point, then make a sharp reversal. Although in crab pattern it is critical for price action test all level in the PRZ zone, but for me 10-15 pips different is acceptable.Convergence of two important demand zone also had manage to capped price action from a complete test of PRZ. However, as the late execution in this trade, my SL is wider (106 pips) which make i'm only risk 1/3 of my normal lots.

8 July 2011

Exit all position at 1.3759 with 15 pips profit. Just don't like this trade because my entry is quite high. I will see if price action will make a second retest on the PRZ, maybe i can get nice entry there.

Posted in: Bullish,Crab,EURCAD