CADJPY pair is well on the way to activate the potential sell orders. We have reason to open a position in line with the Bollinger Bands strategy. The cross have already met the following criteria strategies:
- 5 consecutive candle closed below the lower Bollinger band.
- The creation of a local low.
- The creation of a local high.
We can now expect to break the level of local low, which would be a signal to take a short position (PUT option). Stop loss order there would be above the local top, while the immediate goal for the transaction would be 200% extension of the downward movement (marked on the chart). Of course you can also use another method of profit-taking, where part of the order will be closed at 200% extension, while the remaining part will work and close at 300 or 400% extension.
