Hey there Flyn, a very nice breakout indeed, like you I missed this one while I was in transit. This trade is a variation of my system that I have not included in this first edition of the manual, mainly because it is a higher risk trade that I don't feel comfortable recommending, however I will go through it here.
The 200SMA and 100SMA as noted in the manual both act as resistance as support for reversals of overbought and oversold conditions. However they can also "get in the way" of the bollinger bands, by this I mean they stop price meeting the extremes of the bollinger bands, and instead replace them. This usually only happens in a collapsing trend or ranging conditions. As you can see below, the USDCAD was in ranging conditions coming off a weak downtrend as shown by the compressed rainbow, this opens the way to trade both sides of the bollinger bands. In ranging conditions however, there is no excitement moving the price, so things like major moving averages can have the ability to stop or pause movements if they sneak in between the bollinger bands. In this case the 200SMA did just that, early you can see the 100SMA did the same.
This one would have taken some nimble fingers and confidence to grab, but the signals were there for advanced traders of this system. For CCI users, the 50CCI gave a zero line bounce also which would have got you in about half way through the move. In terms of targets, the 161.8 extension was blown away, the next target may well be the 261.8 extension around 1.1255 at some point (which isn't too far from previous resistance).
As a side note, this same trade on the 4H is below, notice the zero line cross on the 50CCI, and the extended blue zone that preceded this move.
I am looking at a second part to the manual with more advanced techniques such as this one in the near future. I hope this makes some sense.
The 200SMA and 100SMA as noted in the manual both act as resistance as support for reversals of overbought and oversold conditions. However they can also "get in the way" of the bollinger bands, by this I mean they stop price meeting the extremes of the bollinger bands, and instead replace them. This usually only happens in a collapsing trend or ranging conditions. As you can see below, the USDCAD was in ranging conditions coming off a weak downtrend as shown by the compressed rainbow, this opens the way to trade both sides of the bollinger bands. In ranging conditions however, there is no excitement moving the price, so things like major moving averages can have the ability to stop or pause movements if they sneak in between the bollinger bands. In this case the 200SMA did just that, early you can see the 100SMA did the same.
http://img148.imageshack.us/img148/26/chart11ur.gif
This one would have taken some nimble fingers and confidence to grab, but the signals were there for advanced traders of this system. For CCI users, the 50CCI gave a zero line bounce also which would have got you in about half way through the move. In terms of targets, the 161.8 extension was blown away, the next target may well be the 261.8 extension around 1.1255 at some point (which isn't too far from previous resistance).
As a side note, this same trade on the 4H is below, notice the zero line cross on the 50CCI, and the extended blue zone that preceded this move.
http://img148.imageshack.us/img148/594/chart28yf.gif
I am looking at a second part to the manual with more advanced techniques such as this one in the near future. I hope this makes some sense.
You can quit and they won't care, but you will always know.