Break Out Trade

Tonight's trade was a classic break out long trade. The analysis of the chart showed a range on the 15-min chart with an ascending trend line derived from the 60-min chart. There was also a descending trend line derived from the 4-hr chart which price had broken through earlier in the day. Price had been rejected off the range low before I arrived at the charts and was sitting in the middle of the range. At this point I know what I'm looking for price to do before I'd consider engaging(a plan!) It has to break the range high and pull back for an entry limit to be placed. As price approached the range resistance, I moved down to the 89-tick chart.

I use the 89-tick chart for a nice tight entry. What I have to see is price break the resistance line, then I wait for the first 89-tick bar to not make a higher high(the first red bar above the resistance line in the lower chart) and place my entry above the previous candle high.

My target was 1.4400 which was hit for +105 pips. I actually thought I was going to close IF the low of the inverted hammer that formed at 4-hr horizontal resistance(1.4373 purple line) was breached. It wasn't and price carried on for another 59 pips.

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