So the USDCAD has bounced off the bottom of that large candle and is moving up. I have taken a Long with the stop loss below that large candle.
I call it a Master Candle setup which I like because the stop losses are small, here it is only 30 pips.
I find it strange that many trading books don’t push Master Candle setups enough, they are seen even in small candles. To give you an example, I have spend most nights recently focussing on the M1 time chart which just enables me to trade pullbacks of trend that I can’t on M5. Here I focus on trading pullbacks of large candles that are simliar to master candle setups as well as normal pullbacks. 123,s and 2b’s. Price action setups are profitable where small or break even stop losses can be placed without fear. It is strange to be trading a trend on M1 where I add trades on every pullback to obtain a basket of a 3 trades while the price has only moved 20 pips.
