152.40 Succesful break

Hey Guys,

Who took this trade and how many pips did you make?

I took this trade and took a  video of me entering! It will be up here soon!

it was a very fast trade, it broke and rushed up very quickly.

Leave a comment and let me know how you went.

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35 thoughts on “152.40 Succesful break
  1. Arrgh annoying .. for some reason I didn’t set this one as a pending order and missed the break. Never mind, more to come :)

  2. Thanks a lot nick! I am supposed to get 50 points here but i set 100 targets since i was about to go to sleep. When i woke up, i was winning 24 points and subsequently closed my position. No matter how big or small pips it may be, it is still a winning moments. God bless you and your team Nick!

  3. I had a limit order set, triggered by 1 pip then retraced. Oh well, caught it the 2nd time (when everyone else seemed to catch it) and made my pips back… :)

  4. I got 50 pips for half of the position, and I’m still at the money with the second half. I raised my stop to 152.95

  5. I left a pending order on this one that was triggered at 13:50 (GMT time), sadly this was a fake-out (got to 152.42ish befor heading back down) and I was taken out 30 mins later. Not being discouraged I re-entered with a new pending order at 152.50 and got a win that put me slightly better then break-even.
    Lesson learned; dont leave a trade open unattended and have a way to watch (and manage orders!) the marked while at work… :)

  6. That’s interesting. I had a pending order on this one which was triggered at about 12.50BST yesterday. It moved up a couple of pips & then fell right back giving me a 50 pip loss. Presumably you guy’s got the trade when it broke at about 21.30BST. More importantly though I assume your charts didn’t show the earlier break that mine did!

  7. ?

    This was a losing trade on my charts.

    The price broke up to 152.415 in the 08:00 GMT candle, triggering an entry. It then fell back to 150.787 before subsequently advancing. This was a pullback of 162.9 pips, which would have triggered a 50 pip stop less exit (and then some).

    You guys who are reporting profits – I guess you were using a cushion on your entry? That is interesting as the 152.40 scalp line presumably already incorporated a built-in entry cushion since the actual high on which it was based was 152.344.

    Any explanatory comments on how this trade should have been approached to enable a win rather than a loss would be welcome.

    Thanks.

    1. @Traal:

      I was watching it closely and the price broke by about 2 pips without much momentum behind it reversed right away. So on my chart I jsut pushed the line up to the 152.50 psych level and waited for a break of that. It looked like anything below the 152.50 was too strong to be considered a break. I figured that if it broke the 152.50 psych level it would confirm that it was actully strong enough to continue a bullish move.

      It really depends on your charts. What platform are you using? Maybe you should employ a bigger buffer.

      Anyway my method is based on watching the price as it breaks the line. It is all about watching momentum. I do usually employ a 2-5 pip buffer so it it peeks above the line for 5 seconds and then tumbles down I do not get in.

      I usually do not use a buffer on the psych levels though. When they’re broken I tend to enter right away.

      Anyway a minor 2 pip break on my chart. Always remember lines are not magical break levels. I constantly ask myself “are the bulls/bears ready to make a move at this point?” and for that reason most lines have some degree of a buffer.

      Oh and even though the high was .35 there was a bounce at .50 (not a scalp bounce but a candle high). I ntoiced the entire area was an area of S+R so I just kind of averaged out the lien to .40…. In hindsight it was probably best to have the line at .50 from the start but even at .40 I didn’t take the first break.

      Regards, Nick

      p.s. Buffers are never added to my analysis its up to you to adopt a buffer if you want. Buffers are relative…

      p.s.s different brokers have different prices. Sometimes this helps other times it hinders, so what looks like a 2 pip break to me might be a 4, 6 or 8 pip break to somebody else.

    2. @traal:

      I just reread your post. You quote the price with the third decimal… I am not sue to read prices like that so for some reason my mind saw it at 152.45. So your chart shows basically a 1 and a 1/2 pip break…… I think you may be entering too soon. Did you read the free e-Book? I am writing a new e-Book in it I will talk more about how to enter breaks. 1.5 pips is nothing…..my chart could be showing 152.39 while yours shows 152.415…..

  8. Great lesson to be learned by everyone today that can now be considered before entering any scalp trade. (and I say ‘considered’ rather than followed b/c trading does become more of an art over time):

    If you have an S+R ZONE close to a psych level…take the trade @ the psych level…

  9. NickB

    Thanks for your detailed response.

    I am using Metatrader, on which two different brokers show a small break of the 152.40 level.

    Sorry for using 0.1 pip units in my post; the break was so small (about 1.5 pips as you say) that I thought it better to do so. No doubt that in itself is an indication that the break was too marginal to trade.

    Yes, I have read your free e-Book. However, I (wrongly) assumed that you had selected the 152.40 level to include a buffer, and that a break above this level was therefore an immediate entry. I will know better for the future.

    Cheers.

  10. NickB

    Whooops – My post above has appeared using the wrong name (strell instead of traal). I’m not sure why strell appeared automatically in my Name field.

    Sorry for the confusion – and thanks again for the information.

  11. My scalp line was at 152.41. I always use a 4 pip buffer so would have entered at 152.45. In hindsight, since it was so close to the 152.50 level it would have been more prudent to have set the order level there.

    Anyway thanks Nick for your response and support. It’s much appreciated.

  12. On my chart the high of the original candle that formed the scalp was 152.34. The high of the candle that made the failed break was 152.42, so even with an 8 pip buffer I was triggered and got the loss.

    1. @orpips:

      I can understand that but personally I just averaged it out. You will notice I do that a lot in my analysis. If you take a look at the 1am candle on the 8th of July it was moving down but it spiked up to the .48 level. This made it look like the area itself not just the .35 line had some decent S+R so I wanted to give it at least until the .40 for the bulls to prove they had the strength to break through. Averaging it out just helps protect from fake breakouts.

      Anyway .50 would have bene the better level that what i ended up trading.

  13. I ended up losing on this one as well; I think my usual buffer of 6 pips plus my half of spread value for my Oanda platform would have been safe of being triggered by the initial move across the line, if I had set my pending order against the correct line value. I need to zoom in on my chart for the placement of my pending orders. I’ve noticed that in MT the line can be identified a few pips off on one scale and zooming in will identify it at a few pips above or below.

    Long story short, I got triggered on the initial break and lost by 50 pips.

    Cody

  14. Nick I am just wondering by the time the price reaches 154.32 it will have travelled approx 622pips in about two days ,would you consider the demand is near to exhausted.
    I mean would you consider a short if price turns back from line, what do you reckon
    Damien

  15. I had my buy stop set at 152.46 and lost 50 pips. IBFX must have benn a little different than other brokers that day.

  16. “I had my buy stop set at 152.46 and lost 50 pips. IBFX must have benn a little different than other brokers that day.”

    Maybe, but doubtful. I checked three brokers and all had the failed break going 8 pips beyond the high of the initial scalp candle before reversing. In hindsight the thing to do would have been to set the entry just beyond the 50 level since we were so close to it.

  17. Yeah, I don’t know what I was thinking with my entry. How I could not have realized that if my entry is at .48 that I’d be better off putting it a bit past .50 is beyond me; my mind must have been elsewhere.

  18. Also a loss for me. There is a lot to be said for being at the screen to watch momentum if you can be…

  19. MY BROKER’S CHART IS PLOTTED USING THE AVERAGE PRICES, IS THERE NEED FOR ANY FORM OF ADJUSTMENT(S) ON MY TRADE ENTRY?

  20. Titopel,

    My broker charts average as well. My entries are calculated as my buffer value + 1/2 of the scalp, since this would then be equivalent of the adjustment for an entry with a buffer at either bid or ask price.

    Cody

  21. Nick,

    The only reason JPY pairs moved up sharp at 20:30 GMT is because of news release in US after market hours. It’s the report season in US and JPY react to S&P move after the bell. GJ triggered regardless the scalp level but the news. Don’t get me wrong I’m happy for you guys that made some pips but it was news trigger and not GJ trigger.

    Ran

  22. @Ran:
    Which news report are you referring to? I took a look and there was no 20:30 GMT news report…..

  23. Nick,

    Intel and other compamies reported good reports on 14/07 after US stock market houres wich caused US futures to go up sharp. Usualy, if not alwayse, when US futures goes up because of good news JPY pairs go up as well. Just a point to consider next time you’ll take a trade between US and Asia session while we’re in the report season. You will not find these kind of news in forexfactory….

  24. Nick,

    I don’t trade during news especialy it these hours but it’s up to you to decide whether to take a trade during news or not. I don’t