In this live Forex trading video I managed to confirm a regular Forex breakout in trend with additional breakout that came through the lower level of an Expanding Triangle. This way I confirmed a double Forex breakout signal, which was the reason for my short trade.
Signals of the Double Forex Breakout Trade
- The price of the NZD/USD has been following a bullish trend.
- Suddenly, the price action finished a candle below that trend line, creating the first Forex breakout.
- The bullish move gradually evolved into a sideways price move – a consolidation.
- This consolidation resembles an Expanding Triangle.
- Since signals were bearish, I decided to wait for a breakout through the lower level of the Expanding Triangle.
- The price broke the lower level of the triangle and I shorted the NZD/USD.
Stop Loss Order and Target
I placed a Stop Loss order above the upper level of the Expanding Triangle. This way I contained all possible tops on the chart, which made my trade secure.
The usual target of this trade would be at a distance equal to the vertical size of the Expanding Triangle in its widest part. However, I extended this target a bit to the 61.8% Fibonacci Level of the previous bullish trend. I decided to aim bigger due to the strong bearish signal provided by the double Forex breakout.
Live Trading Example
Notice that the price of the NZD/USD went even lower. You may think “Such a pity he missed the further decrease!” Absolutely not. I am happy that my target was reached with no hesitation. Don’t forget that there is no such thing as a 100% winner in Forex. Therefore, the point is to get your targets hit and not your Stop Loss orders. Bottom line, I generated 0.17% pure profit for about one hour. That’s what I call success!