Welcome to fenaghfx

This blog is not for specific trades,but to share my experience and what I have learned over the last few years, Trading involves significant risk and may not be suitable for all investors.

About Me

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I have been trading since 2008 in the fx market, trading mainly eur/usd my approach is technical,using support/ resistance .But always keeping one eye on the news

Sunday, July 10, 2011

The Hockey Stick


The Hockey Stick pattern is one of my favourite patterns I like to trade, this pattern is a long set up .
On this chart the time frame is 1 minute,the red and green lines are Bollanger Bands, the four things I like to see are

1 Range bound price .

2 Good volume .
3 A good break higher.
4 Time .

The Bollanger Bands flattening show me the range, this one happened during the London open and lasted for two hours with good volume, I like too see the break higher from the middle of the range, trapping traders expecting the bottom of the range to be tested, and then time ,I am looking

for at least one hour before a revisit to the bottom of The Hockey Stick but the longer the better .
This one broke higher at 8.15 and revisited 5 hours later giving these shorts a chance to get out for a close to break even trade so the hook would be my entry .

These entries can be difficult to spot ,but give a high possibility of a bounce ,and as I use tight stops a low risk trade,

This chart is on a 1 hour time frame flattening Bollanger Bands after a good move down ,traders looking for another move down get caught in the middle of the range, before the price breaks higher, on this pattern it was just over 2 days untill the revisit of the price, I look for these setups on 1 min ,5 min,15min, and 1hr time frames and I always expect Anything To Happen ,When at my entry point ,because there are no guarantees only odd,s I will follow this blog up with The Reverse Hockey Stick pattern, soon ,All the best Good luck and tight stops Dave.

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