May 21, 2008 17:07

Free Forex Signal – EUR/USD – Flagpole trade

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5-21-08

17:07 GMT – EUR/USD has broken to the upside and crashed through known channel resistance. Their might be one more channel resistance that I redrew that matches current price action (see chart below) so I have placed my buy entries 13 pips above the possible channel resistance. Nice flagpole, in the direction of the trend and wicks are more or less levelling off at a horizontal level. This is a combination of a breakout trade and a flagpole trade. Also note that because of the rising resistance line these entry orders will only remain open for a few hours at most.

Buy – 1.5795
S – 1.5765 (30 pips)
L1 – 1.5825 (30 pips, move second stop to break even)
L2 – 1.5865 (70 pips, I may actually remove this limit and let price action run depending on the signals as the rising support will provide a profitable exit in any case)

UPDATE – 19:24 GMT – Buy entries, both stops and L1 were all raised 2 pips as we enter the new hour because the resistance slope is about 2 pips. So the entry is now 1.5797, for example.

UPDATE – 20:22 GMT – SIGNAL CANCELLED. Last hour closed above my channel resistance and no quick rise happened. Also the hourlies are heavily overbought which might limit the gains and a slight divergence has peaked out over the past 10 hours.

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