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 This latest
trade in my high risk, high probability trading strategy involved a short on
the EURO CAD which recently started
to break from its Range pattern on the Daily Chart. This break was also in sync with
the bearish candlestick formation on the Weekly Chart the week before, as the
breakout from the Weekly Chart’s Pennant continued to indicate further losses
for the Euro. Once again, the trade involved using the signals and patterns of Candlestick
Formations, Trend Lines and Consolidation to indicate market direction on the
larger charts followed by entry on the smaller time frames of the 4 Hour
and 30 Minute Charts. The trade was also supported by recent short-term
economic data for Europe and the United States which were released the same
morning of the trade on August 14.
The strategy involves trading a combination of high probability signals and patterns across time frames that indicate the start of a strong breakout. The risk
involved per trade continues to be 15% for a 2.5 Risk-Reward ratio, with 100
Pips set as the profit target to be hit within the 2-day holding period limit.
The key to these trades to justify this 15% risk is that the signals and s…
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A small trade
was executed on the EURO CAD last week as part of the strong bearish breakout
from the Daily and Weekly Consolidations that had started the previous week.
This was done using the methodology outlined in my previous article which
involves using the 4 Hour and 30 Minute Charts for entries after the Daily
Chart has given a signal for the start of a trend.
With these strong
bearish signals indicating the start of a new breakout trend, the 4H Chart then
provided the first strong entry setup in the form of a Descending Pennant.
Eventually, the 1,2490 Support of this Pennant was broken by a 30 Minute Candle to indicate the start of the
breakout. With the Stop Loss placed above the high of a Counter Trend Line
(CTL) that was also broken, the trade was entered at 1.2480 with an initial
Limit set to the long-term target of 1.2000. 30 MINUTE CHART - ENTRYThis 1,2000 target was more enticing to
me than ´settling´ for the 100 pip target of 1.2380 which is part of my
strategy. However, I humbled my self and returned to my rules and decided to
exit early instead. By that time however, the market had pulled back slightly
above the 100-Pip area,…
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mbarbuska avatar
mbarbuska 19 July

hmm, interesting :)

projectx44 avatar

forex community is thankful for this article....

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