USDCAD appears overbought

The Congestion Opportunities Strategy has just sold USDCAD at 1.29894. The system recommends entering this trade at any price between 1.29734 and 1.30054. The signal was issued because the 28-hour Relative Strength Index indicates that the USDCAD may be overbought, while the Speculative Sentiment Index reading of 1.24546 indicates that trader sentiment is not at extremes.The 14-period Average True Range on a daily chart is 0.00638, so the stop loss has been set at 1.30532. This stop loss order is a trailing stop that will move down as the market moves down. There is no profit target for this strategy. We expect to be closed by the stop loss.Congestion Opportunities is a range trading strategy that aims to sell overbought currency pairs and to buy oversold currency pairs. The strategy will only trade when the Speculative Sentiment Index for that currency pair is between -1.5 and +1.5. Limiting range trading in this way has shown in the past to significantly raise the probability of successful range trades.

Signal ID: 59269
Time Issued: Monday, 08 October 2018 07:00:17 GMT
Status: open
Entry: 1.29734 - 1.30054
Limit: N/A
Stop Loss: 1.30532