USDCAD — Timeframe H4

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Trading Ideas
There are two setups: a short-term counter-trend BUY order in the 1.3765–1.3775 demand zone, and a trend-following SELL order in the 1.3880–1.3890 supply zone. The strategy requires waiting for candlestick confirmation before entering.

Buy Setup (Counter-Trend)
Entry: 1.37686
Stop-Loss: 1.37468
Final Target: 1.38852
Risk/Reward: ± 1:4.9
Price is in the H4 demand zone, with potential for an upward correction before reaching the supply zone.

SELL Setup (Following the Trend)
Entry: 1.38851
Stop-Loss: 1.38951
Final Target: 1.37866
Risk/Reward: ± 1:9.8
Supply area + trendline resistance, in line with the main bearish trend, strong rejection potential.

Technical Reasoning
The large structure remains within the downtrend channel.
BUY is only a short-term correction from the demand zone.
SELL is stronger because it aligns with the main trend and is near resistance.
The combination of the supply zone and trendline increases the potential for rejection.
Pre-Entry Checklist
Wait for price action confirmation (rejection candle/engulfing candle).
Ensure high-impact news (USD/CAD, Oil, USD) does not conflict with the entry.
Use a maximum risk of 1–2% of the account.
Choose one direction based on confirmation; do not take two directions simultaneously.

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