07 Sep FTSE Intraday 5 Min Chart Set-up
Although my intention is to avoid spending too much time on intraday trading, occasionally a high probability set-up occurs that is difficult to ignore.
This is a fair example of the typical pre-US open trading setups that occur during the FTSE morning – mid afternoon session.
The risk with such set-ups, particularly when they occur close to the U.S open is that if U.S sentiment is wildly opposite to the European morning sentiment, then trades like this can fail quickly.
This trade was based on a simple price breakout of a down-trend line. The ideal entry being on a successful retest where support is offered. For a safer entry, a 5 minute close above the original breakout high (the big green 14:15 candle) would be fine, though it may require a slightly wider stop and a slightly lower overall points gain. It’s all down to your individual assessment of risk.