TRDVMA
Short

Extreme Volatility on USDCAD may indicate End of Bulls!

FX:USDCAD   U.S. Dollar/Canadian Dollar
85 2 3
EXTREME VOLATILITY is one of the typical indications to highlight the end of Trends. Usually accurate and indicates indecisiveness among traders thus wild moves. Right time to close long positions. Prices just above the 1.30833 line (which is a very significant Resistance) shall not be considered a clean breakout under current circumstances. Just look at the extreme moves on the chart highlighted with red circle. Huge jumps in both directions within minutes. Not normal. Regards and good trading
Can you highlight other examples of your phenomena? It looks like you have confidence in what you are saying and have been looking for a top for awhile since you have a 5th wave ending as of a week ago or so. What will make you go short?
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TRDVMA timwest
I am not suggesting to go short but close long positions. This is because when one leaves a comment, there are only 3 choices, namely long, short and neutral. Well I thought "neutral" wouldn't be a good choice, as I am suggesting to close positions. Second point, high volatility is not my phenomena but it is a known fact that sometimes trends tend to go into volatility mode at market turns. This is because of indecisiveness, mixture of elevated fear+greed etc. I remember reading and witnessing this many times over the many years of following charts. It does not necessary mean that the market will definitely turn, but if it lines up with overbought markets and other indicators (like divergence, wave count, S&R), it may mark the end of a trend more likely than not. In technical analysis I don't take anything for granted as no indicator or pattern is fool proof. There is no magic bullet or holy grail in trading. With the tools that we have in our arsenal (i.e. our know-how of technical analysis,experience,observations), we try to make an educated guess.
Coming back to the USD/CAD pair, I believe a correction is due and only then it would be reasonable to re-consider to enter long from the risk/reward point of view, in my opinion. I believe there is a great deal of bull potential in this pair once a correction is done.

Also note that I never try to place a definite point for the end of any wave in my analysis. I usually place the end of 5th wave somewhere in the vicinity of a major resistance of support as no one really knows where the wave will end (i.e. a 3rd wave could turn into an extended wave or 5th wave could be as long as the 3rd in some rare cases). So once again, I believe that Technical Analysis is not a pure science but rather an art form.

Regards and good trading
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