Monday night/Tuesday morn. setup

EUR/USD 15M after trade 7:40 AM

EUR/USD 4HR at 10:10 PM 1/5

EUR/USD This currency pair has retraced right at 50% so it could breakout either way.  Lower highs and lower lows indicates another drop may be coming.  News tonight on the other big European pair the GBP/USD is out at 11PM and 1:30 AM.  USA news is out at 7 AM. 

Let the market shows its BREAKOUT direction then watch for another breakout near 7 AM as well.  It looks like a night to set breakout alerts and go to sleep.

Update: 12:27 AM EUR/USD Currency Pair has broke down out of the range box and I am about 65 pips in profit on the first lot and compounding on a second lot with profit locked in.  A 3rd lot will be loading if the market drops another 30 pips.  If it goes up I will be stoped out with 30 pips profit.  Certainly a much much slower market than last night.  The breakout time is a little bit earlier as well and occured around 11:45 PM.  1:19 AM I am stopped out of the trade with a small profit.

Final update 7:20 AM.  As it turned out, my trade went past my stop loss by 15 pips then reversed.  The trade would have paid aproximately 300 pips as it was set up.  The original single trade if the stop loss was left alone would have paid about 150 pips by itself.  In this instance compounding did not work to my advantage, though it had great potential to do so.  Moving the original stop loss also worked against me, though it protected me from losses.

Perhaps the only way to overcompensate for being stopped out on breakout trades a majority of the time is to aggresively compound winning trades.  You may find that you can seldom compound your trades. BUT the few times that you can compound a trade every 40 to 100 pips 4 or 5 times in a row will make a tremendous difference in your profitablity for the whole year.  That is why I always try to keep in mind the potential to compound any trade that is moving into profit.