Break Check Pattern | Live Forex Trade | EURGBP | 4 Hour Chart

By | March 6, 2016

See attached video – Originally posted in July of 2014. Nice breakout candle following the bounce finally followed by a deep check candle.  A bearish spike candle checks the breakout level confirming that a push to the upside is not going to hold. Additionally, stop loss orders are hit from the traders that took shorts on the breakout and placed the stops in the logical place which is just above the breakout. This pattern works because of this very principle and it is precisely why I wait for the check and never trade the original breakout.

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