Today I would like to show you a technique that is valid for all currency pairs and all time frames (my group in the bank tend to use it mostly on the Daily and Weekly charts to avoid market choppy noise). The name of this strategy is the Breakout, Congestion and Continuation pattern, and it’s a high probability setup given the right circumstances. If you master this technique, you could achieve a 75% to 80% win/loss ratio!
The key concepts are the universal pattern of any currency pair : continuation pattern after a strong momentum breakouts of key Support / Resistance levels, using candlestick formation made by 3 consecutive candles.
Search for the pattern only upon the breakout of a significant horizontal level of support / resistance
The pattern : You must see a solid breakout candle breaking through the Support / Resistance level
Don't trade if you get "shaky" breakout candles
Trade only when you see one small candle beyond the support / resistance level, then place your stop orders as shown below
Close 50% of the trade at the close of the first continuation candle, then move stoploss to break even.
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