Wow! That was a strange trade. Here's what happened. The pair broke up out of the triangle on the 0800 EST bar. It went way up, then started falling back but at the end of the hour, it was still above the line so I was in. It continued its fall through the next bar and ultimately stopped me out with a 22 pip loss (the bottom of the triangle. The pair continued to fall through the bottom of the triangle and I was in again at 0.7193 (1000 EST). The pair fell down to 0.7143, +50 pips where I moved my stop to break even and waited for it to hit my first profit target of 
0.7100. It did not. It retraced to my break even point and I was stopped out. The pair went back inside the triangle and then fell again. At 1200 EST I was back in at 0.7183. It again fell steadily past the +50 pip mark and about 1500 EST hit my first profit target of 0.7100. I moved my stop to protect 50 pips, set my limit for 0.7000 and left it to run. I went to bed last night with the pair trading about 0.7060 and when I got up this morning, found that it had hit the 0.7000 at 0245 EST or so. What a wild and crazy trade.
To recap, the first trade was a loss of -22 pips, the second was 0 pips, and the third was +183 pips. The lesson here is that when you trust your trading method you don't walk away from it just because it fails you once. Trading from descending triangles is a powerful method. The continued restricting of price is like a tiger crouching to pounce. You just don't know which way it is going to go. Don't give up if it goes against you once and don't be afraid to get back in if it starts moving again.
Happy Trading!
0.7100. It did not. It retraced to my break even point and I was stopped out. The pair went back inside the triangle and then fell again. At 1200 EST I was back in at 0.7183. It again fell steadily past the +50 pip mark and about 1500 EST hit my first profit target of 0.7100. I moved my stop to protect 50 pips, set my limit for 0.7000 and left it to run. I went to bed last night with the pair trading about 0.7060 and when I got up this morning, found that it had hit the 0.7000 at 0245 EST or so. What a wild and crazy trade. To recap, the first trade was a loss of -22 pips, the second was 0 pips, and the third was +183 pips. The lesson here is that when you trust your trading method you don't walk away from it just because it fails you once. Trading from descending triangles is a powerful method. The continued restricting of price is like a tiger crouching to pounce. You just don't know which way it is going to go. Don't give up if it goes against you once and don't be afraid to get back in if it starts moving again.
Happy Trading!
