My favorite trade is the big monster patterns with visiable patterns in the final stages. The chart that follows is an example of my second favorite trade.
- Continuation pattern within very powerful existing trend
- Very concise and visible chart pattern
- Breakout through a diagonal line or a boundary line in the direction of the trade
- Confirmed by daily MA
Watch Today's Close
This forex cross MUST close strong, today, for me to stay in love. My favorite breakout is a wide-bodied candlestick. I am not a candlestick trader, except for a desire for wide-range breakouts. I will risk 80 to 100 basis points on a trade like this (that is NOT the same as 80 to 100 pips on the cross).