Breakout strategies can be useful leading into a figure like the US Non-Farm Payrolls. Here the idea is to look for a market that’s in the firing line if the figure is outside expectations but also has a defined support and resistance that’s not too far away.
USDCAD looks to fill this bill with an interesting triangle formation in the 4 hour chart. Breakout traders might place stop entry orders on either side of this triangle (buy above the resistance line and sell below the support). For medium term traders it can pay to allow a decent sized filter between the actual support/resistance lines and your order. This reduces (but does not eliminate) the risk of getting whipsawed by false breaks
I’ve shown this on the 4 hour chart
USDCAD looks to fill this bill with an interesting triangle formation in the 4 hour chart. Breakout traders might place stop entry orders on either side of this triangle (buy above the resistance line and sell below the support). For medium term traders it can pay to allow a decent sized filter between the actual support/resistance lines and your order. This reduces (but does not eliminate) the risk of getting whipsawed by false breaks
I’ve shown this on the 4 hour chart
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