Hello everyone,
Today the CAD was the currency to trade, no doubt about it. Indeed, the CAD was gaining ground against all the currencies and if you have a look at GBPCAD, EURCAD and USDCAD in the hourly time frame you will see all their respective Moving Averages pointing down and heavily downtrending.
Here goes a personal trick of mine:
When you see one particular currency steadily gaining or losing ground against different currencies at the same time, like if the market was synchronized, search for entries on that particular currency because it’s a high probability trade.
Well, eventually it was USDCAD the one to give me a short entry so I jumped onboard upon signal. As expected, all the CAD crosses dropped one after the other one and at the end of the day I was able to close out the trade for +63 pips. Here below you may watch the full video recorded live.
Do you want to receive my periodical emails with useful trading tips, strategies, systems and all around interesting stuff? Sign up to my News Letter at the top-right corner of this page!
3 April, 11:52 pm
Nice trade hector! Thank you for sharing
I am spotting a beautiful downtrend as per your moving averages on the USDCHF Daily. Planning to wait for the Breakout,pullback,continuation at around 0.9945 and also another beautiful downtrend again on the GPBAUD (weekly chart). If you zoom into the daily chart for this pair, I am waiting for a breakout,pullback,continuation at around 2.1650
What do you think captain?
Daniel
4 April, 1:54 am
Hector,
How are you?
Nice trade. That was very smooth and, and you said, stress free.
Cheers
4 April, 2:13 am
Excellent trade, well executed!
I’m reviewing my study notes and need to ask you some questions which are relate to trendline breakout swing type of trade, similar to this USDCAD trade. Based on my limited back testing, I see many cases where after retracement trendline breakout, pullback and continuation (and we enter trade), the price actually goes into a range, or forms a 1-2-3 pattern, or forms a DT/DB. In today’s trade, the price also went into range for about 3 hours and tested the previous retracement swing high (around 1.0148).
Two questions:
1. Do you think 3 hours of range is acceptible for a 30 min intraday type of trade?
2. The stop theoretically should be put right above the pullback. I understand your reasoning here to extend it above the 1.0150 and this is also explained in the course. My comment is that do we need to ALWAYS put stop above the previous retracement swing high just in case the price forms DT?
Thanks for another great video.
4 April, 10:13 am
Hello Guys, I will try to address all your questions at once:
Daniel - Aye I see those setups. USDCHF forming triangle formation as it retraces back to the Dynamic Area (do you see it?). Until that triangle gives way to the downside I am personally not going to get involved with the swissie. GBPAUD has been ranging some a few days with few individual daily bars bottoming out at 2.1600. I’d wait for that level to give way first.
Gavin - Thanks :) I was a bit concerned when I saw that range after the NY open, but other than that it was an easy trade in my opinion.
Patrick - here goes the answer to your two questions:
Question #1: the first range didn’t worry me much because of the fact that all the CAD-crosses were moving synchronized. When you see that type of behavior, it signifies that one particular currency (CAD in this case) is showing strength and the overall market inertia usually pushes that currency forward. I was more concerned about the second range than the first one. That being said, had that range broken to the upside I would have quickly exited the trade manually to limit the loss.
Question #2: Aye as I explain on the course, if there’s a level of support/resistance next to the area where the stoploss is to be placed, I like to stretch the stop a little bit for extra protection. Does it ALWAYS need to be that way you ask? well, there’s no “ALWAYS” in trading and each setup needs to be assessed individually, but as a general rule of thumb if by stretching my stoploss few pips up I can get a better protection I will usually do it.
I hope I answered your questions correctly :)
Cheers,
-HECTOR-
4 April, 6:38 pm
Thanks Hector for the response, that mostly answered my question.
Trading is not an easy job. If every trendline breakout trade works out perfectly as described in the course, we are all millionaires, aren’t we? Need to test more.
Thanks again.