Guest post by Jason Madison, independent trader and founder of BeatWallStreetNow.com
Hello Everyone,
By now you all should be familiar with the inside candle breakout technique I showed you in my previous posts, and hopefully you have been making some pips with it.
Today I am going to alert you to breakout that is going to happen in the Eur/Usd before it does so that you can be in position to profit from this move.
Look at this daily chart of the Eur/Usd:
(Click to enlarge)
The price action of the Eur/Usd has been contained completely within in the daily candle from 4/27/2010 for the last 4 days.
This is a classic inside candle pattern and when a candle is able to close outside of this zone then price should continue to move in that direction. Just look at the two previous inside candle breakouts I have marked on this chart and how price moved down hard after the breakout.
In terms of the direction of the break and when its going to happen only time will tell, but given the size and direction of the last candle I going to say it will be to the downside. However, do not make a trade until a candle is able to close below the low or above the high of the containing candle, because until that happens there is no trade.
If you have never traded with this technique before then I suggest that you take this trade in a demo account because you should never try a new technique without demo trading with it first. 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.