From a Technician's point of view, I've got a 60 minute chart up here and you can see the tail end of a bear flag ending with the subsequent big fall away in the EUR. This was your trade and your entry would have been in and around over here. We subsequently had a bit of a reaction and you can see I've drawn another pattern on the right hand side of the chart. This is very much a Hunt volatility funnel setting up. However, it's in the inverted sense. You can see where I would place my stops there by the orange lines where I've made a tab mark and a label and the short was bear just as the take out of the 126 level. So that's how we would have looked at continuing to trade after trading short on the bear flag on the EUR/USD if you are looking at intraday trading on this. This is a 60 minute chart by the way.

What I've done is I've inverted that so that you can see the pattern more typically. So it's USD1 to EUR1. It's that chart turned upside down essentially and you can see the tightening of the volatility as the development of the move came and you can see the tightening in and around what was the 126 level on the previous chart giving the breakout. There is also opportunities to drag your stops up as the EUR was failing in your favour. In this side obviously that means going up as the USD was appreciating.

You can see the buy stop entries and where the stop was trailed over there on this chart. Initially, your original stop was there by the orange line. This is coming out of my trading platform where we've actually traded the particular pairing. The short got executed with brokerage so there is an element of slippage just sub the 126 line. So you can see the circle short and then further down we've taken a partial profit take. If we're looking for the target of 121.6 as projected out of the pattern.

Remember, this projection comes out of the distance between the high 1 and the low 1. In other words, the amplitude as indicated on the previous two charts.

Also at the same time I was interested in the CHF. It's almost hit a more perfect pattern for this. Because the USD is the base currency here we're looking at it as it shows to you, so it will be more recognisable. No need to turn it upside down. Note the relative high 1, the relative low 1, high 2, low 2, tightening of the range and repeated touches at this level without a break. So that was clearly the key point for us to trade long on the CHF versus the USD. The target was met. Subsequently you can see how it has projected. It has come from the high 1 down to the low 1. The amplitude projected in that. It is an excellent exit for trading the CHF.

I've just gone into the platform and shown you the trade that I took as well there. So that highlights the entry as done on the platform. Once again, the trigger point was a touch lower but you get filled a little bit more higher up and then we've grabbed out stops (those orange lines) from the original stop all the way up. Partial profit take and then a final profit take automatically done in the system.

By trading this in this manner and having all these levels already in the system, the market can take you out. You don't even have to be in your station. So that's the benefit of breakout trading. We've had two currencies here that have depreciated to the USD quite substantially and both of them were giving us lovely breakout signals to trade them.

That's Forex trading with Cantos. I'm Francis Hunt. You can follow me on The Market Sniper on Twitter. I look forward to speaking to you again soon.