Trend for 14th of August (updated) - forex trading system

Trend for 14th of August (updated) ~ forex trading system

Hi, everyone. Again a short post today! I was looking at eur/aud pair a few moments ago and I saw that it can collapse any time. I would actually say that I see a bearish triangle pattern. On the 9^th of August the pair hit the resistance and its upward trend finished. The security started collapsing and is now sitting on short term support. How one could trade that? Technical pattern traders simply place a sell stop below the support and wait for a breakout of the pattern. 

This is how most patterns can be traded. You buy or sell a breakout of a pattern and go with the move. Additional thing that you could wait for is some news release that would give a momentum to the move you expect. If the break happens after this kind of event there usually are much bigger chances for the price to move much bigger distance than in a case of a purely technical breakout without any fundamental back up. Look at the chart below to see what I mean. 

See also:

Support

Resistance

Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

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