EURCAD: Reversal Chart Pattern Gives Buy Signal

We have active long positions in this market already, and they were based on a reversal chart pattern as Inverse Head & Shoulders.

The price broke the neckline and gave us a buy signal. If the price drops below the right shoulder, long positions will be closed, and we will search for new trade opportunities.

If the market follows the reversal chart pattern, we will be able to reach the resistance lines based on SMAs and the main downtrend line. In these zones, it will be possible to fix the profit.

In spite of using one of the most solid trend reversal signals, it does not mean that the market will move 100% upward. No, the market can continue the downtrend as well. That's why we must focus not on the possible market movements, we must focus on proper risk and money management. Don't forget about it!