News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
Oil - US Crude
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
UK100 Develops an Inside Bar Under 5,470

UK100 Develops an Inside Bar Under 5,470

Walker England, Trading Instructor,

The UK100 (FTSE) is an interesting exchange that has moved as much as 21% lower after printing its 2011 highs at 6,109 on April 27th. However, since our low was set in place at 4,783 on August 9th, the UK100 has been in consolidation mode. Moving in a triangle pattern, a higher high or a lower low has yet to be seen for four months. With a lack of market direction, as price pings between support and resistance, traders should consider the “inside bar” strategy discussed in today’s DailyFX Plus webinar and December 9ths Chart Of the Day.

UK100_Develops_an_Inside_Bar_Under_5470_body_Picture_1.png, UK100 Develops an Inside Bar Under 5,470

Staying on our Daily chart for the UK100, we will find price trading today inside of yesterdays low and high. These levels reside at 5,470 and 5,363 respectively. Traders may use an OCO* entry at these levels to trade a breakout of either point. Stops and limits may also be managed again by using the ATR indicator.

ATR is an indicator that monitors volatility buy comparing the open and closing data on our chart. Today ATR is reading at 122, meaning that the pair has traveled an average of 122 points from open to close over the last 14 daily trading periods. My recommendation is to use 20% of ATR for our stop/limit levels.

UK100_Develops_an_Inside_Bar_Under_5470_body_Picture_2.png, UK100 Develops an Inside Bar Under 5,470

My preference is to sell the UK100 using Entry orders. Entry’s should be set to buy over 5,470 (previous high) and to sell under 5,363 (previous low). Stops and limits should be set 25 points away, in line with 20% of ATR.

Alternative scenarios include continued consolidation before a breakout of entry levels.

Additional Resources

Trading Breakouts

Trading Triangles

Support & Resistance

*For more information on placing OCO, Stop and Limit orders on FXCMs trading platform, join us for a software demonstration linked below.

Daily Software Demonstrations

---Written by Walker England, Trading Instructor

To contact Walker, Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to

DailyFX providesforex newson the economic reports and political events that influence the currency market. Learncurrency tradingwith a free practice account and charts from FXCM.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.