Here is a great example of the breakout continuation trade. This type of trade setup is a great way to trade breakouts without trying to chase the initial breakout. When entering on the initial breakout, often times these are just simply fake moves that lead to a complete reversal in the market.
Today we took a nice long on the GBP/USD for +40 pips. Overall it was really slow European and NY session, which required a lot of patience to wait for the proper trade setup. However after an hour and a half of waiting for this setup we finally had a good trade.
Notice the EUR/JPY goes up to the last intra-day resistance level, then closes as a reversal candle formation. After the reversal candle closed we went short.
Here is a great example of using market correlation to find an entry. On this trade we had everything either at previous support or resistance, and additionally each 15M chart was closing as a reversal candle formation. Additionally on the EUR/JPY and the GBP/JPY there was a great forex breakout continuationtrade setups occurring.
Here is a great example of getting in with the current trend by using forex chart patterns that repeat themselves many times throughout the trading day. On this example the market as a whole was point towards USD strength as well as the YEN crosses being pointed down. On the EUR/JPY we were making consecutive lower lows as well as lower highs
When I first wrote the title to this article it took me a few days to actually think about the content that I was going to put into it. You see trading forex, and especially being a short term day trader in the forex market is tough! While I could have just filled this with [...]