88 PIIPS FROM FALSE BREAKOUT REVERSAL



The EURO AUD Pair provided a strong Bearish Signal to indicate the reversal back inside of the Daily Chart Range Setup. This appeared following 2 failed attempts to get things going Bullish above Resistance. Based on the theory of False Consolidation Breakouts from my Trading Manual, the expectation was for a profitable reversal from this reversal....












The Chart below shows the Signal given on the Daily Chart at Resistance to start the movement back to Support.



DAILY CHART





This meant that traders needed to find a way to trade this expected decline quickly, before the opportunity is missed. Looking at the 4 Hour Chart-which is my choice for entry - an Entry Setup came in the form of a breakout from Consolidation.



4 HOUR CHART





Instead of using the Resistance, the Stop Loss place above the Trend Line which was strong enough to protect the trade. The target was set to just above the Support. After entering the trade and leaving it open for 2 Days (Maximum Holding Period for this type of trade), the trade was closed for a gain of 88 Pips.



4 HOUR CHART







DAILY CHART





This trade confirmed the forecast given for this strong reversal. These types of trades can be extremely profitable once spotted, providing profitable trades in a very short period of time. 


Once we are able to spot these setups and trade with the right strategy and guidelines, consistent gains from these movements can be captured each week.



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Your Mentor



Duane Shepherd
(M.Sc. Economics, B.Sc. Management and Economics)
Currency Analyst/Trader
shepherdduane@gmail.com /(876)-3825648
Twitter: @WorldWide876
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Comments

  1. Drawing trend lines is one of the few easy techniques that really WORK. Prices respect a trend line, or break through it resulting in a massive move. Drawing good trend lines is the MOST REWARDING skill.

    The problem is, as you may have already experienced, too many false breakouts. You see trend lines everywhere, however not all trend lines should be considered. You have to distinguish between STRONG and WEAK trend lines.

    One good guideline is that a strong trend line should have AT LEAST THREE touching points. Trend lines with more than four touching points are MONSTER trend lines and you should be always prepared for the massive breakout!

    This sophisticated software automatically draws only the strongest trend lines and recognizes the most reliable chart patterns formed by trend lines...

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    Chart patterns such as "Triangles, Flags and Wedges" are price formations that will provide you with consistent profits.

    Before the age of computing power, the professionals used to analyze every single chart to search for chart patterns. This kind of analysis was very time consuming, but it was worth it. Now it's time to use powerful dedicated computers that will do the job for you:

    http://www.forextrendy.com?kdhfhs93874

    ReplyDelete
  2. Drawing trend lines is one of the few easy techniques that really WORK. Prices respect a trend line, or break through it resulting in a massive move. Drawing good trend lines is the MOST REWARDING skill.

    The problem is, as you may have already experienced, too many false breakouts. You see trend lines everywhere, however not all trend lines should be considered. You have to distinguish between STRONG and WEAK trend lines.

    One good guideline is that a strong trend line should have AT LEAST THREE touching points. Trend lines with more than four touching points are MONSTER trend lines and you should be always prepared for the massive breakout!

    This sophisticated software automatically draws only the strongest trend lines and recognizes the most reliable chart patterns formed by trend lines...

    http://www.forextrendy.com?kdhfhs93874

    Chart patterns such as "Triangles, Flags and Wedges" are price formations that will provide you with consistent profits.

    Before the age of computing power, the professionals used to analyze every single chart to search for chart patterns. This kind of analysis was very time consuming, but it was worth it. Now it's time to use powerful dedicated computers that will do the job for you:

    http://www.forextrendy.com?kdhfhs93874

    ReplyDelete

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