AUDJPY Cash In After Massive Breakout From Breakout + Re-test Trade

A very nice setup here on the AUDJPY market today after an old containment line is being re-tested as new resistance. This is a classic ‘breakout & retest’ type pattern which will hopefully produce a strong down move.

You can see I am short already – this is from a 4 hour breakout trap and reverse setup I managed to catch early in the New York Session last night, and we were discussing in the War Room chat.

But you can see a nice daily rejection candle has formed, which gives this setup more bearish authority.

Very Aggressive Bearish Move Follows

This setup didn’t waste any time in following through – which is always a great thing. No one likes to have to linger in a slow reacting trade while it builds up steam to move.

The breakout and re-test structured trades are well known for good price follow through – when an old breakout containment level is tested as new support or resistance.

That’s exactly what we got here, it’s a ‘text book’ perfect swing trade setup that I just couldn’t ignore. It’s a good example of how reading price and taking action based of ‘what you see’, rather than ‘what you think’, can get you into great trades without the aid of any over hyped, or confusing indicators.

This trade had the potential to return 10x ROI if it was rode all the way to the next major support level. I will illustrate how massive that is – if you risked 5%, you could have increased your capital by 50%. If you were cunning enough to risk 10%, then you would have doubled your whole trading account.

Of course, you should always use money management you’re comfortable with and is sensible. But if you would like to become a price action trader, and discover how to read and chart or learn know how to play swing trade setups, like the one shown above – check out our Forex War Room.