Benny Manieri waits USDCAD for trend continuation buy to trigger
Now, I was riding the gravy train down when USDCAD was bearish. Seriously, before I was miking this pair like a cow that was in my barn. Now, we're just drifting sideways on longer-term timeframes. Still, opportunity exists.
For those of you who are unfamiliar, HIDDEN divergence is used for trend continuation trades. Note the disparity between the RSI and price action around the highlighted green reversal zone. Price action is showing higher lows and RSI is showing lower lows. The white line highlights where RSI went oversold, and I will be looking for break above/close above that level to signal a buy. Although this isn't a combined technical score trade in the truest sense, I did try to keep a point total as I was stalking the trade. Make no mistake however, this IS a trend continuation trade. Stops are 11 pips or so below the low, and targets are the swing high. I'm using a single contract, although others choose to take a second out in hopes of hitting the 1.27 extension.
Enjoy!
Benny Manieri
For those of you who are unfamiliar, HIDDEN divergence is used for trend continuation trades. Note the disparity between the RSI and price action around the highlighted green reversal zone. Price action is showing higher lows and RSI is showing lower lows. The white line highlights where RSI went oversold, and I will be looking for break above/close above that level to signal a buy. Although this isn't a combined technical score trade in the truest sense, I did try to keep a point total as I was stalking the trade. Make no mistake however, this IS a trend continuation trade. Stops are 11 pips or so below the low, and targets are the swing high. I'm using a single contract, although others choose to take a second out in hopes of hitting the 1.27 extension.
Enjoy!
Benny Manieri
Comment:
Stay sharp boys and girls, I double bottom has formed around the 1.29 even handle. It's showing bullish divergence. This would be adding 3 points to your combined technical score.
Order cancelled:
We never got our break above close above before the break of structure to the downside, so the trade's off the table