Yen and ledge patterns
Currency markets are challenging markets to trade due to all of the gaps due to overnight action. One effective technique that can be used is defining these small ledges drawn in on the left and taking breakouts from them.
What we are looking for is matching highs or within a tick or two, and also matching lows within a tick or two. Each of these must be separated by itleast one bar or more. Once the ledge is defined just trades the breakouts. In this market I would suggest not taking the breakouts with big gaps up like today's. Also, trading them in the direction of the trend is preferred.
Some of these work, but the risk increases quite a bit. Also, today's gap is not from a ledge, I just showed it to have a real life look at a large gap as it occurred. This market is poised for a rally so this gap could hold, but a better entry is likely. Ledges work in all markets, but like any technique cannot just be traded blindly.