Daily Bar breakout on GBPUSD for 60 pips

The markets had fallen hard the last couple of days and I thought that they would have fallen a lot more but yesterday, the markets found some support. This pattern was seen across the DOW, FTSE and other currency pairs. I knew that a lot of people were expecting the markets to tank completely but having a whole day where it consolidated presented an opportunity in my opinion. The markets would either rally or drop like a stone and I expected whatever happened the market would have moved strongly when it showed it’s hand.

The chart above showed my successful order. I say successful order as this was the actual trade that happened. I actually had two orders in the market last night, an order to sell at the bottom of the spinning top candle and an order to buy at the break of the top of the spinning top. The successful trade was the break of the top and it moved strongly. I only showed this order as the chart looked messy with too much annotation.

The stops for both orders were the other side of the candle which was 60 pips or so. I had a minimum take profit of 60 pips which is a 1:1 risk to reward but ideally would like a 1:2 risk to reward.

This morning, the market just was on a one way street up even in the shorter timeframes with no pullback up to my 60 pip level and I felt that I could see a pullback so I took profit at this level. A nice 60 pips in the bag!

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Category: Forex trader, Forex trading, Spreadbetting, Trading