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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