In this article, we are drawing Pitchfork channels on USDCAD
On the monthly USDCAD chart, we can see that the pair is in a downside sideways Pitchfork channel. The pair is trading around the 1.3000 level. In the previous month we had a break above the long-term falling trend line 1.3000 level which is now on the retest. The 1.3000-1.3050 zone needs to hold for a n upside extension into the 1.3500 and higher.
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
Andrews Pitchfork trading technical analysis education! Join today for the new group!
We have used the combination of the top-down trading analysis and the Andrews Pitchfork channels to get to a trading entry stop loss levels and targets. On the daily chart, there is a new uptrend Pitchfork channel that could lead to a test of the median Pitchfork channel line 1.3400 level. Any possible dip into the 1.3000-1.3050 could be used for a long trade entry. If you go long , place the stop loss below the 1.3000 level and target the median Pitchfork channel line 1.3400 level at least. A break above the 1.3150 level would give a higher probability long trade entries.
Happy trading! (click on the chart to enlarge it)
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