Here is an update to the Canadian Dollar Trade. The trade has reached my first profit target and is now profitable, at this point you can adjust your stop to your entry point to lock in profits. To generate the profit levels I have a Gann Level that I am using, if you are a beginner the ellipse works well here also, just draw it in from the low of the trend to the high of the retracement. If you plan on using the Ellipse as a profit taking tool I would recommend sticking with the long term setting.
Another potential trade for next week is the British Pound on a 280 minute chart. On this time frame we see a potential Elliott Type II Buy opportunity that has not yet triggered. I drew a simple trend line which provides an initial profit target as the market seems to be respecting that resistance level. In fact, we already had our first Type II attempt that would have been profitable had you used that trend line for a profit target.
I recently starting trading the 280 minute time frame as it goes well with the Daily charts and it opens up a few more trading opportunities for me.
Using my "Rule of 5's" as a guideline take the 280 minute time frame and multiply it by 5, the result is 1400. In 24 hours (24hrs X 60 minutes) there are 1440 minutes, in this case I use the Daily chart to look for my higher time frame convergence. As we see on the Daily chart we are currently in a retracement of an uptrend holding the 50% level. Remember, look only at the overall picture of the higher time frame which currently reads uptrend and in a retracement. The lower time frame (where the trade is at) is potentially at the end of a downtrend and ready to make a move higher, both time frames agree.
Ron Wheeler
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