USDCAD Trend Rider breakout

USDCAD Trend Rider breakout

The Trend Rider confirmed the post-breakout signal on the USDCAD trade with a red Momentum Finder (the box at the bottom).

During the range, the Momentum Finder gave a few pre-mature signals, but as with every trend-indicator, you need to stay away during sideways markets.

During the following trend, the indicator did what it does best: confirmed the momentum and providing confidence. I got out with a healthy 140 pips. But with the benefit of hindsight, I should have stuck around longer.

Now, the Momentum Finder is back to deep red after a sideways period where the Momentum Finder showed grey bars. However, the trend seems overextended on the 1H timeframe and you are better off looking for a different market that shows pre-breakout behavior in an early range. The GBPUSD ticks the boxes as of now.

 

 

The current Gold chart also offers an interesting perspective and while everyone seems to be looking for shorting opportunities, the Trend Rider has turned grey and indicates the range.

Just like during the pre USDCAD breakout, you should be sitting on your hands tightly now. Getting involved in such a market while the price is still trading in a tight and well-defined range is a very dangerous thing to do. Just because the price has been going up, it does not mean that it must go down too.

There is no price in trading for the one who gets in first. More often than not, you will be the victim of spikes and squeezes around the range boundaries. So once more, patience is key.

 

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