Lately I've been trying to trade a breakout strategy, by finding areas of consolidation and placing pending orders above and below.
On the EURUSD chart, the area in blue is where I think the price has consolidated, and I have placed pending BUY and SELL STOP orders at 1.32512 & 1.30050 respectively. This is quite a large range, but it's held it for 9 days now, since the 26-01-2012.
If you look at the daily chart (not posted), you can see the EURUSD has been in a downtrend since the end of October 2011, and started a possible correction about the 12th January. This consolidation pattern we're seeing is possibly traders becoming unsure if the pair will continue moving up in a trend reversal, or continue it's downtrend after a correction.
