Breakouts above major resistance or breakdowns below major support are a trader's dream. They occur rarely, but offer opportunities for trades over multiple days. Such was the case when Euro futures ($6E) broke down in mid-August.
For multiple months, the Euro put in a strong level of support around 1.16, bouncing between there and lower highs beginning in May. As the chart shows, this put in a technical formation of a descending triangle, which is a bearish technical pattern. That bearish pattern played out here in the Euro when prices ultimately broke below support.
Coach Dan breaks down this trade and exactly how traders can identify these moves and profit.