Today, I want to show you an almost perfect example of what we look for on the indicator to enter a breakout trade. This trade actually was a loser which I think is important to show. If you want to become a professional trader, you need to know the odds and probabilities and accept the inevitable losses.
Several minutes into the London session, the CAD (green line) which has been the strongest currency for some time starts turning up with momentum.
At the same time, the GBP (red line) becomes the weakest currency with a very steep line down indicating huge momentum in the market.
GBP/CAD SELL
I highlighted the opening price bar which corresponds to the momentum we saw on our indicator.
From there, price drops 17 pips which is not enough to get the 20 pip profit target we go for with this simple breakout strategy.
The good thing is because price went in your favor, our stop loss trails and you would have only taken a loss of about 7 pips compared to a full 20 pips.
Watch the entire video analysis below:
