It’s not hard to look half-way smart when you talk about something (CAD/JPY) for weeks and then it happens, gloriously … when it’s a red-hot currency or currency pair. But let the real lesson not be lost: the lesson about picking battles and going for the best bets.
To be super annoying, let me quote myself (really, so I can just copy and paste and not re-type it):
Why not look for the obvious trade? A definite resistance break, a definite bounce off support in a great trend, etc.? After all, we can only manage a handful of trades at a time, so let them be the best.
The loonie just broke 400 pips higher against the yen. Depending on where you got in, you’d be up at least 300 pips by now. this also shows limitations of oscillators identifying overbought/oversold: for something super-hot, they scream wolf too much. Go here for an article discussing when to heed this and when not to, select the 11/09 archived article. Breakout situations like we just witnessed with this pair are often exceptions many traders make to “don’t buy when overbought/sell when oversold”.
