I tried something a little different this time. A squeeze box formed as the 200 EMA and the 62 EMA started to come together. This time, I dropped down to the 5 minute chart and drew another squeeze box. I then took the breakout of that box as my entry signal.
Short 1 (500) @ 5033
Stop @ 5066 (-33)
Target @ 4850 (+183)
Click above for larger image
As soon as price hit the previous support, I moved the stop to +5 pips to lock in profit. I wasn’t comfortable with the price action. Usually if price breaks that 5 minute squeeze box, it will fly through the 1 hour box. This time it didn’t do that, so I got stopped out. I’m fine with this trade for the time being, but I have to backtest this trade more to get more comfortable with it.
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