High Probability Forex Day Trading: Narrow Range Breakout

As a forex trader, the key of successful currency trading is to have a set of high probability low risk forex trading strategies. Trend following of a narrow range breakout is a reliable and frequent trading strategy in forex market.

Cable made a pin bar on 03/30/09, followed by a narrow range bar (NR20) on 03/31/09. The breakout of narrow range happened on 04/01/09. Yesterday was a nice follow through of this breakout, which recovered most of the down swing. On hourly point and figure chart, cable made a double top breakout at 1.4633 confluenced with a resistance trend line breakout.



Euro formed a narrow range bar (NR7) on 04/01/09 with a series of higher lows, which indicated the interest of support. The breakout happened two hours before the start of US session. The up swing took euro standing above 61.8% Fibonacci retracement level. On hourly point and figure chart, with an obvious support trend line formed at the bottom, euro made a double top breakout at 1.3333.



On hourly point and figure chart, yen made a double top breakout at 99.25. The up thrust took former swing high of 99.66, then met resistance, and remained below 100 key level during the whole US session with a raised bottom indicating support. In Asia session, yen touched 100 but without following through momentum.

04/01/09 Cable Made a Tricky Narrow Range Breakout

The narrow range breakout for cable happened at 4:am during London session. At the beginning of US session, cable made a 100-pip quick slide, shaken out most weak hands, and rallied up the rest of the day. Remember 03/31/09 was a NR20 (narrow range 20 day). Once cable crawled back above 1.4372, the daily directional bias should still be upside. Now it's already Thursday morning 6:50am, the real jump happened at 1:00am and followed through during London session. It's a up trending day for cable.


It was a NR7 for both euro and yen.