GBP CAD PROVIDES A 140 PIP TRADING GAIN FROM FALSE CONSOLIDATION BREAKOUT REVERSAL ~ forex trading system simple 5 minute scalping
This successful trade took advantage of the sharp False Breakout Reversal from the Pennant Consolidation on the Daily Chart that started on December 3, 2015. As with all of these types of setups, the initial breakout attempt was quickly taken out by a strong, opposing signal that led to a breakout at the other end of the Consolidation. Given that this setup was in sync with the theory of False Breakouts that is outlined on Page 54 of the Trading Manual, the trade provided a strong gain of 140 Pips.
The graph below shows one of the examples of False Breakouts that are explained in detail in the Manual.
The graph below shows one of the examples of False Breakouts that are explained in detail in the Manual.
FALSE BREAKOUT SETUPS
As you can see from the Daily Chart of the GBP CAD below, the setup was almost exactly the same as the one above.
DAILY CHART FALSE BREAKOUT PENNANT SETUP
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| (FXCM Charts used to provide Entry Signals based on the New York Candle Close of the Daily Chart) |
Following the Bear Candle that attempted a breakout at Support, the bulls quickly took this out with a stronger Bull Candle that started the reversal. As the pair provided another Bull Candle Signal above the Resistance, entry took place using the 4 Hour Chart to take advantage of the expected continued rally. Shortly afterwards, the pair moved sharply towards its target, providing a gain of 140 Pips in a few days.
DAILY CHART - SHARP RALLY
4 HOUR CHART UPTREND
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| (Dukascopy Platform - where I have my Account - is used for Trade Execution ) |
As can be appreciated by the chart below, the strong pullback that is now taking place indicates that the exit point for this trade was also accurately chosen...
DAILY CHART - PULLBACK
Spotting Entry Signals and deciding on where to place our Stop Losses are hard enough. Being able to confidently identify where to exit our trades before these pullbacks take place is even more challenging. This why you need to be guided by the Technical Factors that control the market and use this knowledge as part of your trading plan. The market can appear as if it will continue in the direction you have chosen even after you have met your Pip Target for a trade. However, knowing when the market is mostly likely to pullback before this actually starts, will help to avoid the temptation of being too greedy, which always leads to losses.
If you stay focused and follow these cardinal rules of trading, you will reap the rewards - especially with this Trading Manual.
DRFX FOREX SWING TRADING
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