Patience Is A Virtue In Trading Forex

It pays to wait until the time is right instead of forcing the trade.

In yesterday’s trade update I described the channel that the Eur/Usd is moving in right now and I drew an ascending triangle and stated that when the price broke out of the triangle to make a trade. Today the price broke, I made a trade and it worked exactly as I wrote earlier.

I love it when that happens, for two reasons is it helps all of you and it helps me 🙂

4hr chart *Note clicking on the chart shows our trading software.

The price bounced off of the bottom of the triangle twice testing the levels and then the pair broke through to the downside.

The price moved a total 112 pips in that move of I got in after the break and I got out 91 pips later. Even with that great move we are still in the smaller trading range I spoke of in the last article as the price broke the 1.4200 resistance and stalled and move up shortly afterward.

Did anyone else reading this get in on that trade today? Please share with us all of what happened.

Next Trade Setup

Ok now we are still in the same range so the current support is 1.4200 with the next downward target at .14050 that is the bottom of your channel. The resistance is 1.4400 so we will look for a bounce off of the 1.4200 to go to the 1.4400 level.

Yesterday I spoke of chart patterns and we could have another chart pattern forming to help us identify which way this pair is going to move. I think I may see a bear flag, which indicates a move to the downside.

This picture is from chart so you can go there to learn more about chart patterns.

Here is the bear flag forming on the Eur/Usd:

So you can see that this move could be ready to be continued to the downside with a target 0f 1.4050. Tomorrow there is a lot of news to have a impact to this pair so keep that in mind when trading and remember a surprising news story can throw all of the technical analysis out the window. Just be ready.

You can find some great information on the daily news at Forex Crunch Daily Outlook. You can also see another look at the Eur/Usd reading this post at the LFB.

When entering your trades remember to use stops and use good money management strategies.

Good trading, and as always your feedback is desired. If you have questions and comments do not hesitate to post them here.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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