Forex blog: Forex Blog by Lloyd - From HectorTrader: EUR/US...High-Probability Forex Trade

Tuesday, August 12, 2008

Forex Blog by Lloyd

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From HectorTrader: EUR/US...High-Probability Forex Trade
This post was brought to you by Hector of 3SMA Forex Trading Course.
- Analysing the 3SMA Trend Following System Trade Entries
Some few days ago I was mentioning the breakout of the upward range we had seen on EURUSD from the low 1.50′ies to 1.6000. Indeed, EURUSD upon having formed a double top at 1.6000, broke the upward channel bottom to the downside.

At that time I mentioned that those who like to trade within ranges could have a very good short opportunity by selling the EURUSD after the first pullback to retest breakout levels. Also, the logical target would be the range bottom in the low 1.50′ies…

Well, the pullback did happen, it did retest breakout levels (see picture below), and from there it dropped almost 500 pips within the last few days. Very nice high-probability trade setup, isn't it?

As I always say, price action trading is nothing but buying support and selling resistance, especially if it's aided by a solid breakout. EURUSD has just proven, once again, that this simple-yet-effective technique is all a trader needs to be successful.

-HECTOR-
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p.s. At this point of re-posting, further breakout of the Range Bottom channel has caused the Euro to drop another 500 points to 1.48xx below the 1.5300 buying support

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