Finally...

Hi All,
So finally the much awaited breakout has well and truly arrived. And how it was. It led to a huge gain of more than 200 pips for both GBPJPY and GBPCHF.. I am sure a lot of you would have made nice little profits in this. You should have. It is always easy to make nice good profits on an upmove and in a trend when you already know that the trend is coming.

Well, if you did not know that the upmove was coming, then you need to still learn a lot more in this market. Last few days, there were quite good signs of a breakout coming along. The ranges were getting tight, the tops and bottoms kept holding on well despite the movement in other currencies and despite the various news. The more the range trading takes place, the bigger the breakout would be and thats what we saw today. The tight range trading kept going on and on for 4-5 days and the more the number of days it went on, the greater will be the speed and ferocity of the breakout when it arrives. GJ was the one which has range traded the most and today it could be seen that its range was double the normal range.

Now a bit of consolidation and a bit of retracement would take place before the next upmove. All the consolidation and retracement are just fueling up for the next move. No one knows when this would change trends and when this would stop. But as long as you are in the direction of the trend, there should not be much to worry about.

Happy Trading!!!