24 Febuary 2010GBP/USD March 10 Contract:

This is a 10 min chart that shows the overnight range nice and clearly. Again the definition of a range for me is price being contained between its previous swing high and its previous swing low (marked with red circles) So mark off the boundary and wait for the breakout.

So the same as I did before. I drop to a lower time frame and wait for the break out.

This happened just after 08:30 and is marked by the red circle. So same process take the breakout low and -2 round it down giving an entry of 1.5300 (red line). Stop goes above the pullback high (blue circle) +2 round it up giving a stop of 1.5325 (light blue line). So thats a 25 tick stop half of 25 is 12.5 (13). So my scale out point is 1.5287 (green line) where I closed out 2/3rds of my trade leaving the last 3rd to run.

Now I know this is a little incomplete about the last the 3rd but I just want to run through this particular trade setup a few times and how I get in and where my stop goes as I think its a solid price action setup. There is no need for complex analysis or indicators all of the place. Its a simple range bound break out setup and I hope it gives a little insight into how I'm trading.

For me on this trade I hit 13 ticks on 2/3rds of my position and my last 3rd was break even. So again not gunna break the bank but if you working from a 3lot position then it boils down to 26 ticks to one lot. (I hope that makes sense)

I promise i'll run through the trade management for this setup soon and this isn't the only stratergy I look to employ I just felt it was a good starting point.Thanks for having a look and please any feedback is welcome.

Thanks

Pozzy