In this article, we are drawing Pitchfork channels on USDCAD
On the monthly USDCAD chart, we can see that the pair is on the downtrend Pitchfork channel. It is strongly supported by the rising trendline 1.2500 level and is testing the 50% of the upper side of the channel 1.3000 level.
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.
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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 weekly chart, there is a new clear downtrend Pitchfork channel that could lead to a test of the half of the upper Pitchfork channel line 1.2600 level. The pair is testing the upper falling trendline You can enter a good risk to reward short trade entry with the stop loss above the 1.3100 level, targeting 1.2800 and 1.2600 level lower. Invalidation of the downside swing will come only on a daily close above the 1.3100 level.
Happy trading! (click on the chart to enlarge it)
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