[5R Win – Trade Setup] Buy CADJPY

CADJPY just showed bullish sponsorship when the price ran into a Weekly FVG+ – and in the process, it created a 4H OB+ which we would like to trade. Upside targets are lots of equal highs.

4H trade setup
Daily chart – notice the swift rejection from Weekly FVG+
Weekly chart – again swift rejection Weekly FVG+
Monthly chart – overall bullish

Trade confluences

  • 4H rejected off a Weekly bullish FVG+ and showed bullish sponsorship
  • The direction is in sync with HTF orderflow – Monthly is bullish, Weekly has not yet formed a Breaker – hence it is also bullish. Daily is the only out of sync chart
  • Trade location is in a discount range

Profit targets

There are some very clear equal highs above current price – and hence they become our profit targets. Note that they also match nicely with our 2R profit scaling

Trade is invalidated when…

Price first takes out upside liquidity and then comes back into the trade zone. At that point, we should re-evaluate the whole trade setup.

Update – 24 Apr 2021

Trade started nicely and price is now just shy of hitting 1R – where I am planning to take out 50% volume to make this trade risk free.

Update – 27 Apr 2021

Price has breached 2R and we extracted another 25% partial profit. Price is now about to hit 3R. Stop loss position is at breakeven. I’m letting the last 25% run and see if we can get like 4R.

Trade is reaching 3R

Update – Apr 27, 11:20 PM

Trade hit 3R. I’ll call this trade a success!

3R hit!

Update – Apr 29, 12:10 AM

4R was hit with the last 25% runner. I’ve tightened my stop loss to 3.5R. I don’t expect price to just continue up straight – as we are hitting premiums of this price range – selling is expected to show up anytime!

Update : 1st May 2021

It’s a Saturday today here in the US – and the trade touched 5R on Friday’s close price. Trailing the stop loss behind the nearest structure.

5R trade on CADJPY

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