This strategy is a quick and easy way to trade currency pairs without having to screen watch from morning ‘til night.

This strategy was developed a few years ago now and was recently revived due to the very volatile market conditions as a result of the financial melt down.

In this short article I will be addressing one of the keys to success in any business which is Money Management and Trade Management.

This really is something that is often glossed over as it can be quite quick to explain but is very often under valued or under appreciated as a consequence.

First off I want to explain how I manage my overall account equity.

Previously we looked at the range break out and we considered the following as a consideration of when to trade which pattern, "the move into the range dictate the most likely direction of the break out move, 65% of the time it is a continuation pattern 35% of the time it is a reversal pattern."

Swing Highs and Lows 

The First thing that we need to recognise is what is a a Swing High and Swing low.  This is probably the easiest part of price action and bar counting although the whole process gets easier with practice.

I define a swing high as;