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Another Bearish Signal for USD/CAD — Double Top on D1

The Canadian dollar has formed another bearish pattern against its US counterpart — this time on the daily chart. The previous pattern (ascending channel) is still in play but does not look too good. The current pattern is not an ideal double top formation. Yet, the break below this double top’s neckline would constitute a valid entry signal and would definitely reinforce the earlier signal too.

The pattern is shown using the yellow lines on the image below. The upper horizontal line marks the two tops. The lower one marks the neckline. The cyan line is my entry level, which is placed at 10% buffer distance. The green line is going to be my take-profit level once the breakout occurs. It appears at a distance of 100% of pattern’s height below the lower border. I will set my stop-loss to the high of the breakout candle or of the previous candle if the breakout one will be positioned mostly outside the pattern.

USD/CAD - Double Top Pattern on Daily Chart as of 2017-01-15

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this USD/CAD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this double top on the USD/CAD chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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