Is it better to take retracement or breakout signals? (plus USDCHF signal)
Hey traders, how is everything?
You know, tomorrow could be a volatile day… the FOMC statement is due tomorrow and it has proven to be the most important fundamental release, at least the one that has the most impact in the market.
So you have to be careful, because the market will go crazy if we get something different from what traders/investors expect.
I follow a simple rule, if my trade doesn’t have more than 80 pips on my favor, I just close it.
You don’t have to break your mind creating complex rules.
Retracement or Breakout Signals?
Which one is better?
The truth is that both of them work… each one of them have their own advantages.
You could set your order on breakout signals and go away… so if you don’t have much time, just use breakout orders.
Retracement signals tend to have a tighter SL.
So I like both of them, I dont have a special preference… As long as the signal is in the direction of the market condition, I take them…
What’s your take?
Ok, now lets take a look at my signal… by the way, it is a retracement signal.
It is still a pending order, the market still needs to move on my favor before the order gets triggered, so please, don’t take it now, wait for it to get triggered.
This entry is a retracement signal. In this case, the market already broke through the range, so we are trying to take advantage of the retest.
The USDCHF retraced back to the main support and it formed a significant pattern with upward pressure.
Here is the 30M chart:
Entry stop: 0.9647
Remember it is still a pending order.
What type of signal do you prefer? Retracement or Breakout signal?
What do you think about my USDCHF signal? Are you going to take it?
Share your thoughts.