"Ben Benanke Breakout"... IFCN Wk 8 -Wed- Equity: $524.65

Almost sounds like a title to a song....

We had an interesting but definitely tradeable reaction to the interest rate announcement today at 13:15 CST.

Many of the primary pairs formed pennant formations just prior to the breakout. An example of the formation from another site.

Most forex traders have heard of or traded pennant formations, which look like triangles on a chart. When one side of the triangle gets breached, the market in question tends to move quickly. This was definitely the case in EUD/USD.

When 1.4810 was exceeded, the price quickly moved up almost 100 pips. For about a 30 pip position risk, it is no wonder triangles have a steady following! The real key to using them is having a plan for managing all of the positions. I watch for them every day for a place to put on additional positions in the direction of the trend.

The Alpha account is currently at $524.65, with larger profits in the Eud/Usd and Gbp/Usd. It would be nice if that trend could continue for the rest of the week.

The long Usd/Jpy trade was stopped out for a 60 pip loss. I can't say that I'm surprised. The long term trend is currently favoring the Yen.

Have a great rest of your week.

Joel Rensink
www.infiniteyield.com

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me which address you would like it sent.