Break Check Pattern | Live Forex Trade | AUDJPY | 1 Hour Chart

By | March 12, 2016

See attached video – Originally posted in July of 2014. The AUDJPY  broke through the established support followed by a quick check of the level that came in the form of an engulfing signal.  What is interesting is that although this did not meet the standard criteria to be classified as a break and retest pattern I still used the bounce as a target. Even though there was no white space left on the chart for this to be called a break and retest I believed the bounce to be deep enough to be perceived by the average traders as a support level thereby making it a target. Therefore, I placed my 2x profit target at this level rather than somewhere else farther back as typical with the break check pattern.  In short I consider this to be a break check pattern with the profit target placed at the bounce level like you would do with a break and retest pattern.

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