Guest post by Jason Madison, independent trader and founder ofBeatWallStreetNow.com
Hello All,
I hope you found the inside candle breakout technique I showed to be useful, and I hope some of your went on to use it to make a few pips for yourselves.
Today I am going to show you how I used this technique to make an easy 73 pips trading the Eur/Usd intraday. I hope by seeing the trades I took you will see how easy it is to profit in the forex market if you have the right tools:
Here is a chart of the 15min Eur/Usd from Wednesday, April 28, 2010:
- At this point we see a breakout of the previously established inside candle. I immediately went short here and got in at about 1.3210.
- It was at this point that I closed my position at 1.3179. I closed my position here because I did not like the price action that was occurring on the smaller timeframes. So I decided to play it safe and get out of the market. This got me 31 pips.
- Here we see a large bullish candle and if you look closely that this candle is actually a breakout candle. The two candles before it were inside of the candle that I exited my first trade on. You may be asking yourself why I didn’t take this trade. Well it’s simple really, I didn’t take the trade because the wick was really long which tells me that price tried to move up but couldn’t sustain the momentum and the fact that price had touched an area of resistance(as evidenced by the blue line) before it was pushed back down made not taking this trade a no-brainer.
- At this time I noticed another inside candle breakout to the upside and I quickly went long and got in at 1.3158.
- And this is where I closed my trade at 1.3200 for 42 pips
Do you see how easy it is to trade these candles? I really hope that you take this technique and use it to profit in the forex market, but before you do make sure you demo trade with it first. So that you can test it out in a risk free environment. Until next time.
Happy Trading,
Jason Madison
If you would like to learn about more patterns like these and how you can discover how you can learn the secrets to trading for a living then visit BeatWallStreetNow.com
Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.