Hello Hector, THANK YOU for your excellent explanation of the trading method in a clear concise manner. i have two questions.

1) The NEW daily candle prints at 5:00 pm EST on my MT4 platform, does it print on your charting platform at the same time as well or at the London open

2) On the video above, there was another small range candle on the week of October 5-12, 2008 after a strong momentum candle horizontal range breakout. Would you have taken the trade as in hindsight, this turned out to be a very good trade as well. Thank you and look forward to your answers

Answer by Hector DeVille
Hello Linda!

1) I guess it depends on what MT4 platform you use. Mine (MIG FX) prints a new daily bar at 00:00 Euro time which is 6:00 pm EST.

2) The breakout congestion continuation patterns are everywhere actually. As long as the breakout part of the pattern happens in momentum (solid full-bodied bar), you’ve got high chances to make pips off the continuation part.

Cheers!

Hector

Hello Hector,

I really appreciate this tutorial and was able to bank some using this system as earlier mentioned on email.

I believe:

The best Breakout Congestion Continuation setups are those in which:

A) The Breakout part of the pattern takes place is momentum with a long, solid, full-bodied breakout bar

B) The Congestion is a tight, small bar, maybe even a slight retracement

C) The Continuation bar is another solid, momentum bar in the direction of the original breakout

So, if the Continuation bar doesnt show momentum enough to trigger your entry and therefore forcing you to wait for yet another candle to trigger your entry, that lowers the setup quality as a whole or what’s the same, it increases the setup overall risk. Remember that this is a momentum technique so you WANT to see momentum on both the Breakout and the Continuation. So, to sum it up, if you’re a fairly conservative trader and the Continuation bar doesnt actually trigger your entry, you might want to play accordingly and reduce your lot size on that particular trade as the setup has failed to show all the momentum you’d wish to see.

That would help someone else..

Regards

Sabore…

Salute Hector.

Surely, i enjoyed this lesson.

As the matter of fact i’ve been waiting for informations you provide quite for some time.It’s very good to have them presented in such a clear and simple way.

Kind regards and thank you.

Thank you for your invaluable free Forez video which I have been found beneficial to my trading activities since the time I discovered your website.

Thanks.

Thank you for helping us to understand methods that probably would have taken months or years to learn. It is invaluable and I hope you can continue to provide your input to us.

Thanks

Hello Hector,

I just wanna thank you very much Hector for this strategies.

I´ve been searching setups on the history charts, but I have noticed in many of them that there wasn´t such congestion bar as the momentum was to much, so the next candle was a full body momentum bar or suddenly after the breakout bar, the market changes its direction on the other way around so Im now confused about that fact.

Answer by Hector DeVille
Dave, that’s EXACTLY why you must wait for those setups where you do get the congestion bar after the breakout, in order to avoid being caught up by fake breakouts.

Please remember that this is a high-probability setup, and in order to make it high-probability we must cherry pick those scenarios that fulfill our required conditions: we must have a momentum breakout candle AND we must also get a congestion bar. If we don’t, we take no trade.

Selecting carefully the setups we trade is crucial if a trader is to keep his/her win/loss ratio at reasonable levels.

Hector

Hi Hector,

Another awesome video, enjoyed thoroughly. My question is on the stop loss and the take profit. Do you put in the stop loss when you enter the trade? If so, have you seen this taken out by the brokers. Also do you manually take the part of the profit? If so, what time of the day you do it? Thanks

Regards
Vignesh

Answer by Hector
Yes, I put the stop loss in right away right behind the other end of the “congestion” candle. But the target profit I dont since on this particular strategy I like to close a portion of the trade right as the “continuation” candle closes, so I need to leave it open.

Excellent video. Infact, I am kind of laughing at myself right now because had i seen this video 3hours ago I would have made a nice trade by now as I was following a forex chart and after watching this i looked back and found the exact pattern on it.
You just taught me another wonderful opportunity that i can take in future as i scan through the charts. I really appreciate it.

Hello Hector,

Really fantastic video you have made. It is just like showing light to the people in the dark(beginners) especially as it is a long term strategy.

Keep this good work. My best wishes to you in all your efforts to teach forex.

Thank you

Sekar

thanks hector i always wanted to learn end of day tradinging this is a great help.

Hey Hector,

Nice video and I really like your style of trading! I have one quick question for you:

If you were to get another congestion bar (or multiple bars) and it happens to be another inside bar, would you still trade the continuation move or would you walk away from the trade? If you do trade the move, what are your rules?

Thanks and keep up the awesome work!!!

Answer from Hector
Hello James,

I usually like to see the continuation bar immediate upon the congestion bar. At the most, I allow a second congestion bar (which I will use to set my entry and stop loss levels) but at no rate I will take a trade beyond that second congestion bar. The more congestion/hesitation bars, the higher the chances that the momentum is just not there.

Hector