As displayed above, the price made a valid 1st push-up on Friday the 18th. After which, we began to trade for the 2nd push-up according to our smart money cycle rules. The next trading day did not make that 2nd push-up but it did create a more significant level from which we looked to trade from the follow day.
This trade was laid out in our Daily Market Preview. If you want to see how we select manipulation points hours in advance, check out our Daily Market Previews.
Going into the 22nd, the price drove into our 1.2723 level during the New York session, creating a stop run and confirmation (candle #1 & #2).
The entry was triggered immediately at the close of candle #2 (confirmation candle), as the price was just nine pips from the low of the formation. This trade had 20 pips stop loss, and the ADR was over 75 pips making 20 pips stop loss an acceptable standard for this pair according to our risk management rules.
The price was hesitant at first, ranging around the entry price. Smart Money still had to build liquidity to drive the price further up. This eventually took place, and the price drove up to 60% of the full target, the breakeven point. I secured my risk and watch price move into the full take profit not long after.
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The post Trading the Smart Money Cycle – Live USD/CAD Continuation Trade first appeared on Day Trading Forex Live – Advanced Forex Bank Trading Strategies.