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

By | March 6, 2016

See the attached video – This video was originally uploaded in July of 2014. This is a nearly perfect example of the Break check pattern on the CADJPY 1 hour time-frame. A Large break candle is followed by an immediate check candle that pushes back into the breakout zone and rejects not only the zone but the center band as well. What is important to point out is that the check candle did not perfectly meet the criteria for a spike as it did not conform to the 25% rule that is in place. However, often times you have to exercise common sense and look at the rejection then put it into perspective. I’m not suggesting to ignore the rules that are in place but rather to be a bit flexible because after all we are not trading based on perfect shaped candles we are trading on the meaning conveyed by the candles and the areas they reject. In this case if you decided to ignore the spike candle you could have entered following the engulf that formed, either way this was a perfect example of the break check pattern. This also showed us how the market often gives us second chances to enter.

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