USD/CAD potential false breakout setup — profit from trapped traders

In the H2 timeframe, USD/CAD broke below the support at 1.3100 yet there is no follow through to the downside yet for the next two candles. Right now, USD/CAD is attempting to commit above the support level. This presents a potential false breakout setup with a long entry after the confirmation. Watch the video below (timestamp starts 3:28) to find out the right way to trade the false breakout setup with the details and confirmation to increase your winning rate. S&P 500 futures is used as a case study in the video below:

Below are the key parameters for USD/CAD potential long setup for trading session on 21 Oct 2020.

Entry: long stop order at 1.3120

Stop loss: 1.3075

Take profit: 1.3190

Photo by Author — Ming Jong Tey

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