MAJOR BREAKOUT TO CONTINUE ON CHF JPY



Following the start of a sharp Bullish breakout from its large Pennant Consolidation, this pair has taken a bit of a pause before it resumes the sharp rate of gains for the Swiss Franc. This pause in the breakout is what I refer to as the Mid Point of the Breakout. It is where the pair will form a smaller pattern of Consolidation such as a Pennant or Range before continuing to the major target of the Breakout Equivalent.

 Whenever Consolidation patterns are broken, they will ultimately go to this Breakout Equivalent target before either pausing for a very long time or reversing all together. This concept can be seen across all time frames and for both Ranges and Pennant Consolidations. The accurate measurement of this target helps traders to confidently identify their Limit Orders in their trade setups without the need to monitor the trade for signs of pullbacks. One can confidently leave the trade to move towards this area knowing that this target will be hit 95% of time once identified.

 There are times when the market will move quickly to this area with very few pullbacks along the way and there are times when it takes a breather before resuming its breakout. If it takes a pause during the breakout, it will provide another profitable entry point for traders who would have exited their first trade at this area.

 The larger the Consolidation, the larger the breakout and the greater the distance to be covered to reach its ultimate target. Given the size of this Consolidation on the Daily Chart of the CHF JPY, traders have a very large number of Pips that they will be able to capture once the breakout resumes.
DAILY CHART























This breakout has taken place within the context of a strong Uptrend that began from a low of 78.35 in July of 2012, providing added momentum to this Bullish move.
DAILY CHART























The Bullish signal that started the breakout came on November 3, following which the pair rallied quickly by 647 Pips over a 25 day period.
DAILY CHART























After reaching this area, we can now see the gradual formation of a possible Consolidation setup in the form of a Range. If we see a U-Turn from its current price in the next few days towards Resistance, the Support and the Range will be complete.
DAILY CHART
























If we then see a strong enough Bullish Breakout Candle to resume the breakout, we will enter accordingly to take advantage of the rally. Assuming this Range is formed, we would now have two possible targets to aim for during this breakout.
DAILY CHART














After ensuring that the trade setup meets our criteria, we will then need to decide which of these targets to choose. We could see the pair rally towards the Breakout Equivalent of the Range and then pause for a few days or weeks before continuing to the 2nd Breakout Equivalent. It could also bypass that 1st target with very few pullbacks or pauses to then hit the 2nd target. This decision can be avoided, however, if our targeted range of Pips is achieved prior to these areas being reached. If on the other hand, our target range coincides with any of these points, then our Limit Order will be based on our criteria for trading these types of scenarios.

________________________________________


________________________________________

Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
Contact: shepherdduane@gmail.com
Twitter: @WorldWide876
Facebook: DRFXTRADING
Website: www.drfxswingtrading.com

Comments

Post a Comment

Popular posts from this blog

SHARP GBP USD RALLY PREDICTED 7 DAYS AGO

Image
As predicted several days ago, the GBP has rallied sharply above major Support area of 1,2000 to start an uptrend that will take it up to the 1,2750 area by Wednesday January 25th, 2017. This is all part of the predicted  formation of a Consolidation Setup on the Daily Chart. In the screen shot of the Private Video Tutorials sent to DRFX Subscribers (www.drfxswingtrading.com), you can see the blue line used to indicate where I expected the rally. PRIVATE VIDEO LESSON - JANUARY 10, 2017 In the screenshot and Youtube Video below of January 18, you can see that the rally took the form of a strong Bull Candle - exactly where I predicted. PRIVATE VIDEO LESSON JANUARY 18, 2017 This projected Consolidation is based on the type of bullish and bearish waves on the Daily Chart. From the Trading Manual, you will see that there are certain types of waves that tell us when the market will form a Consolidation.
Read more

STRATEGY NOW UP BY 23.78% WITH RECENT 2.00% USD CHF TRADE

Image
This trade involved trading the False Breakout Reversal Setup that was taking place on the Daily and 4 Hour Charts last week, amidst the period of risk aversion across markets in reaction to the on going Coronavirus outbreak. This quick and aggressive trade took just 4 Hours in providing me with a 2.00% Rate of Return, just ahead of the Bullish Reversal that took place at Support. With this result, the new strategy is now up by 23.78% from just 14 trades, pushing me closer to the next major target of a 30% Rate of Return. As long as we carefully and patiently wait to only trade the setups with a High Probability of Success, large Rates of Return are possible for us in this difficult market.  VIDEO HIGHLIGHT OF THE USD CHF TRADE The main factors related to this trade that you'll seen in the Manual and in the more detailed Video Analysis available only to my subscribers were: 1. Accurately Identifying Consolidation
Read more

FOREX TRADING MANUAL & TRADING SERVICES

Image
The ability to accurately forecast and profit from the movements on the Forex Market is what you will enjoy with this  Trading Manual and Swing Trading Services . DRFX FOREX SWING TRADING With this Manual, you will learn the Techniques based on Candlestick Patterns that determine market direction every day. You'll be able to apply this knowledge to your Swing, Day Trading or Scalping strategies for Maximum Returns every week, as you trade your way to Long-Term Wealth . PREDICTING MARKET DIRECTION & PATTERNS There are times when you may be trading what appears to be an Uptrend on the 30 Minute Chart only to realize that this was part of a temporary reversal on the Daily Chart leading to unexpected losses. These problems are easily solved with the  Manual  as you’ll discover the main  Technical Factors  of the Daily and 4 Hour Charts that allow you to accurately identify Market Direction and predict Candlestick Signals.
Read more