Sunday, January 10, 2010

Trading Plan: Continuation Trades




Its wise to place a stop sell order at the price below the 3 min DP area, so in case the price drops rapidly you get stopped into a short trade.

This should obviously only be done in a trending phase (tuesday or thursday morning)

On the GBPUSD chart and the white FDAX chart you can see the stop and buy pattern, after 3 higher highs the trend pauses but then on a pullback into the DP are it continues:

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