In the chart on the right you'll see that this pair is bouncing along the 800 sma on the hour chart. As we've talked about before, this is not an unusual pattern and when a pair does this it usually precedes a break out either up or down. I will open either a long or short trade on this pair if the pair closes above or below the channel lines. Instead of our usual stop loss rule, we will close the trade if the pair closes back inside the box (as opposed to our usual rule of using the other side of the channel). The reasoning behind this is that it may take several tries before the pair actually breaks away from the 800 sma and so we may enter this trade multiple times before it is successful. The one thing that is for sure is that it will break out. When? Who knows, but we'll be ready when it does. I'll keep you posted.Happy Trading!
