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Trade of the Day

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Trade of the Day

Thu, Nov 5 2009, 22:34 GMT
by Casey Stubbs

Winners Edge Trading


     Triangle breakout trades are great for getting good profits, in a quick time frame. The problem with trading chart patterns is that you have to be there when it happens. Which is no easy task. I can tell you that many times I will be watching the pair and just when I go to do something else, that is when the price will break through and I miss the trade. I hate it when that happens. 

So today lets look at a triangle on the Eur/Usd.

4HR chart 
Euro

We have the resistance at 1.4920 and the support at 1.4626. Then from the support to the resistance we have a rising trendling underneath. That is what forms the triangle.

So the way to trade this is to draw the support, resistance and trend lines. Than zoom in to a 10 min chart to see if there is more room to see the price moving.  So lets look now at the 10 min chart.
Euro

When the price breaks one of those lines than a new candle opens enter in the direction of the trade. Keep your stop loss above or below the most recent support or resistance. Open multiple lots in order that you can take quick profits than move your trade to break even and let the rest run if the pair decides to trend.

Also keep the total amount of all lots open at 2% to minimize risk.

Thats it give it a try and email me or write a comment here if it works or if it doesnt work. 



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Winners Edge Trading  | 337 Miller St. Latrobe, PA
http://www.winnersedgetrading.com/ | caseystubbs@gmail.com

Legal disclaimer and risk disclosure

Trading forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

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