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Keys to Trading Consolidations

There are 3 Main ways to trade Consolidation Patterns.
1. Trading Within Consolidation between Support and Resistance;
2. Trading Breakouts;
3. Trading False Breakout Reversals;
Each of these scenarios can be profitable, but the keys to being able to trade them successfully comes down to identifying the right Trading Signals.
If you Swing Trade the markets using the Daily and 4 Hour Charts without Indicators, then it means trying to identify the correct Candlestick Signals and Patterns on these …
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Not All Breakouts are Created Equal

Breakouts from Consolidation are the most common of setups that are traded in the Currency Market. These have been more dominant in recent years because of the extraordinary Monetary Policy stances of Central Banks as well as other factors that have led to low levels of liquidity. Breakouts can be fast and sharp, leading to trade targets being hit within minutes or a few days. However, as tempting as these are, there are many traps that have often caught traders with our pants down and left us w…
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THREE CARD TRICK- AUD CHF

Like the infamous game, the AUD CHF is giving us 3 choices for what it could be setting up to do.
1ST CHOICE- SIDEWAYS, THEN BULLISH BREAKOUT

The pair had formed and broken out of a large Pennant before pulling back to test the Resistance. It has started to U-turn and looks as if it could be getting ready to resume the breakout. However, it could resume the breakout after moving sideways in a smaller range before breaking long.
DAILY CHART
The other possibility is that the bullish signal appear…
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FALSE BREAKOUT FOR USD CAD ?

The USD CHF had given us a strong bearish signal to break Support of the large Daily Chart Pennant, only to disappoint by breaking out for a short distance before now being set to return inside the consolidation. With the USD CAD giving a similar, but bullish signal this week, will we see a similar pullback or a large profitable breakout?
USD CHF-DAILY CHART
There was an initial signal followed by a sharp U-turn then a brief breakout of only 140 pips-small in comparison to the size of the Pennan…
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