Currency markets exhibit a strong degree of trendiness and therefore
breakout strategies based off short-term price patterns are one of the more
effective approaches to trading these markets. It is important to wait for
the trend to develop. A market surpassing its 20 day high (or low) is one
means of identifying a strong trend. When the market has consolidated and
gone sideways for a long period of time, this is where your best trending
markets will eventually develop, after they breakout from these trading
ranges. Execution is another area where various techniques can be applied.
Using tools such as the 2-period rate of change as means of identifying
pullbacks, as well as bar patterns, can help time your entry. Money
management incorporates the ability to predetermine your risk before
establishing your position.

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