DOUBLE CHART PATTERNS CONFIRM EURJPY 1D BREAKOUT TRADES
Triangles, Ascending Triangle, Descending Triangles and Ranges are repeatable trading chart patterns.
Triangles and ranges are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart)
Trade Management after there is a breakout candle close
1 - Position size (compare volume bar to volume ma line)
a - Breakout candle must be 100% of average volume for a full position size
b - If 75% of average volume then ½ position size
2 - Enter two trades
3 - SL for both trades will be 1.5 x ATR
4 - 1st trade TP will be 1 x ATR
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price
6 - When 1st TP hit – move 2nd trade SL to breakeven
7 - Adjust the 2nd trade SL to follow price
*8 - When breakout candle is more than 1 ATR from breakout candle open
a - Enter 1st trade at candle close with ½ position size
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open
c – Price should pullback to that pending limit order for 2nd trade
Triangles and ranges are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart)
Trade Management after there is a breakout candle close
1 - Position size (compare volume bar to volume ma line)
a - Breakout candle must be 100% of average volume for a full position size
b - If 75% of average volume then ½ position size
2 - Enter two trades
3 - SL for both trades will be 1.5 x ATR
4 - 1st trade TP will be 1 x ATR
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price
6 - When 1st TP hit – move 2nd trade SL to breakeven
7 - Adjust the 2nd trade SL to follow price
*8 - When breakout candle is more than 1 ATR from breakout candle open
a - Enter 1st trade at candle close with ½ position size
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open
c – Price should pullback to that pending limit order for 2nd trade
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