10/06/14 Following my interview on FX Streets I decided to put my money where my mouth was and look for a SHORT trade on the EURUSD using my new XTL Breakout Strategy. At 10:00 am on the 09 June a potential SHORT was setting up on a 60 minute Chart with a first Red bar forming that was average or smaller in size than the preceding 20 bars. Entry point was triggered at 1.3609 on the next bar and I closed out the trade the next day at 18:00 as the price seemed to be in a range bound movement and I didn’t want to carry the trade over to the next day and incur any charges. This gave a 3% profit on my trading account balance. As Below
The Yellow solid line at the bottom of the smaller Stochastic Chart is called a False Bar Stochastic and indicates a strong trend. In this case it is a Bearish Trend as it is at the bottom of the chart. Whereas a bar at the top would indicate a Bullish Trend. This is a useful indicator when deciding to enter these day trading type forex breakout trades on shorter time frames. It just adds that extra bit of confidence along with other indicators and the use of higher time frame charts. In this case the EURUSD Daily chart indicated that the pair had pulled back on an Elliott Wave 4 and found resistance at around the 1.3669 price. This was backed up by another indicator on the Daily Chart called the TJ’s Ellipse which was acting as resistance. This then made me look for Short trades the following week on lower time frames and I found this trade setting up. I am only using this strategy on the major Forex pairs but have tested extensively on EURUSD and GBPUSD.