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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

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Bullish weekly chart

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Boxes mapping out bullish expansion

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Boxes mapping out support levels

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H1 1234 with 4 at triangle trendline support

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.

 

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4 thoughts on “How to trade a trend continuation – illustrating GBPCAD”

  1. Daniel Ku Guet Liang says:

    May I please ask how do you get those TP levels when the highest level I can find in the chart is 1.6510. Appreciate your advice. Thank you in advance.

    1. Daniel Ku Guet Liang says:

      I think I found the answer to my question. http://www.pinterest.com/pin/403987029045087297/

  2. Tan Teck Guan says:

    Binni, I fresh attending Jerome H4 and BM classes. I know there are many way to analyse trade.for GBPCAD, If I will to apply BM theory, I see 3 wks of boxes consolidation. I’ll wait for 50% high of previous high then wait for 1234 retractment. Is this alright? I know I’m a little late in my entry but getting the box concept right is my main priority. Am I correct in my analysis?

    1. Binni Ong says:

      35% will constitute expansion. yes that’s right.

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