How to trade a trend continuation – illustrating GBPCAD
Two things I always bear in mind when I choose a trade
1. Don’t choose a constipated trade
2. Don’t choose a counter trend trade
What factors to look out for then?
1. To prevent constipated trade, trade after there is a lengthy consolidation
2. Trade those which are with the H4 boxes
Following Bank of England data, we see GBPUSD bursting up. How about GBP related crosses?
Let’s see what GBPCAD is doing
The issue now with this trade, H4 triggered WR on a big long bar with close very near to pt 1. This is also a break high trade. So SL must be tightly held.
If this is a break high trade, then above 16460 will clear significant resistance. However, immediate resistance resides 16480. Next resistance at 16520-30 16570-80 and 16600.
The benefit of this trade is price broke a big pattern and it’s with the trend, therefore, price might have strength to travel further.