BarroMetrics Views: No Reason 2
These are among my two favourite sayings by Pete Steidlmayer. In today’s blog, we’ll see both principles in action.
Figure 1 shows the USDCAD setup:
The early morning manipulation first saw a breakout. So, now it was time to enter.
I enter on a retest of the FTP zone. I decided to reduce my position size to 50% (because of the pattern I mentioned in ‘No Reason‘). I had my stop below the start of the latest 1-d swing directional move (1.3226).
After entry, the USDCAD broke below and accepted below the FTP low at 1.3325 – the price action negated the assumption behind the valid breakout. For this reason, when the pair rallied, I exited the position at breakeven.
So, what now?
The trade is still on with a slightly lower FTP low (1.3368). My process:
Let’s see what happens.
FIGURE 1 USDCAD 290-min