Forex | FX Operator | Currency Trading

I would like to share about this trade of opportunity on the breakout of the horizontal resistance line. Let's take a look at the example on the chart:

On the chart, you will notice that the price level at 1.9248 has formed a resistance during a short term period (we can determine that the level is a resistance after the second or third tries). So how do we enter a trade here? You will look to enter the trade by setting a buy stop order +5 pips away from the resistance with the stop-loss set at the nearest support level, which is around 1.9218 in this case. The stronger the resistance the stronger the breakout will be. So where to take profit if the order is triggered? Since this is a very short term period on a 5-min time frame, you will look to close the position at the next resistance or at the open price of the day if the breakout occurs below the open price. Take the daily pivots into consideration as well.

This method can also be done on a bigger time frame, however, that would requires a larger stop-loss point.

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jest1081   |2007-04-03 16:14:36 oh i love this one...has to be one of my favorite setups. its also called the box Quote 0   0

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