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Trading the “Mini-Channel Breakout”
Watch a trend develop and you will see pullbacks along the way—brief counter-trend moves that quickly disappear as the trend re-emerges. Entering on these pullbacks can be lucrative, but most traders go about it the wrong way. They either enter too early when the pullback is still occurring–and then have to hope the pullback soon reverses–or they wait till the trend has clearly re-established itself, but by then much of the move may already be over. The following strategy attempts to solve these issues. While it won’t win every time, this simply mini-channel breakout strategy will help you get into trending moves early, but with a level of safety, since the breakout will signal the pullback has likely ended and the trend direction is re-emerging.
The Nature of Trends
A trend is not a relentless move in one direction; rather it’s a series of strong impulse waves in one direction separated by pauses or smaller reversals (corrections) in the opposite direction. Therefore a trend is composed of both impulse waves and corrections. No matter which time frame you trade on, generally you will see the market move in 3, 5, 7… wave patterns. A 3 wave pattern consists of an impulse, a correction, followed by another impulse. A 5 wave pattern is an impulse, correction, impulse, correction then an impulse. Tack on another correction and impulse for the 7 wave pattern. To some this may sound like Elliott Wave Analysis, it is not. No experience or knowledge of Elliott Wave analysis is needed to use this strategy, and no “wave counting” is required.
Look at a chart and with a bit of practice you will see every trend takes this configuration (figures below). Not rocket science, but upon this little insight you can base a powerful strategy. Each correction—which often appears to look like a mini-price channel–provides a potential entry signal to get into the next impulse wave of the trend. Such entries provide relatively low risk, profit potential and a plethora of trade signals each day, especially if you trade multiple forex binary options pairs or assets.
Figure 1 shows the EUR/USD from the open of the US session. From just after 8:00 till 10:00 a 5 wave pattern developed. I have highlighted it in black for demonstration purposes. The labeling with the numbers is not important, but is simply used to show how trends develop in impulse, correction, impulse… patterns.
Figure 1. EUR/USD 5 Minute Chart – March 11, 2020
So how does this help us? Since we know that most of time a correction is followed by a move back in the trending direction, we can look for corrections. As the correction is forming—bars start to move counter the former direction, such as in waves 2 and 4 above—we draw lines along the highs and lows of the correction to create a mini-channel (see figure 2).
As the day continued on March 11 an uptrend developed (multiple waves), interspersed with minor corrections. I have marked some of these corrections on Figure 2 in black.
Figure 2. EUR/USD 5 Minute Chart – Trend with Mini-Channels
By drawing the mini-channels on the chart, we provide ourselves with a potential entry signal. In Figure 2, we have strong moves higher, followed by moves lower (mini-channels). When the price breaks back above the mini-channel a long/buy/call trade is taken. In a downtrend we have strong moves lower, followed by corrections (mini-channels) higher. A short/sell/put trade is taken when the price breaks below the mini-channel.
Unfortunately, not every breakout results in a sharp move in the direction of the former trend, and it is very possible to get false breakouts since the channels are small and we must draw them in real-time.
Drawing the channels can also be somewhat subjective. Comparing charts with another trader at the end of the day, it is unlikely all the mini-channels would be marked the same. Also, corrections may not always take the form of well-defined channels; corrections may be erratic, and not easily contained between lines.
Stops and Profit Targets
If trading binary options, you don’t need to worry about stops or profits targets. Rather simply make sure that the time frame you are watching corresponds to the time frame of the option you trading. For example, a breakout on a one minute or five minute may not do you any good if your option doesn’t expire for several hours. If your trades last hours, use a 15 minute chart. If your trades last minutes, use a one or five minute chart—or both.
The strategy for entries is simple—look for a strong move in one direction (impulse), wait for a pullback, draw a channel around it, then wait for the breakout to occur in the direction of the impulse. Getting in is only part of the battle though for those not trading binary options; you also need to control risk and plan for a profitable exit.
To control risk, place a stop just below the most recent swing low, prior to the breakout. Your risk is the difference between the entry price and your stop price. Set your profit target at 2 to 3 times your risk. For example, in an uptrend if you risk is 15 pips, place a profit target at 30 to 45 pips above your entry price. I personally set my profit target at 2X my stop. Figure 3 shows an example from the morning of March 11. The trade had a 5 pip risk, and therefore a profit target was placed 15 pips above the entry price.
Figure 3. EUR/USD 5 Minute Chart with Entry, Stop and Profit Target
This strategy provides many signals, and as trends end and new ones begin this is where losses typically occur. After some practice, attempt to filter out some of the signals using indicators or wave counts to avoid being on the wrong side of the market when a change in trend direction is likely.
Markets move in a continual pattern of impulse, correction, impulse, and so on. Even when the overall price movement is confined to a range, you will typically still be able to see this type of movement. Yet, this type of strategy is best utilized when an asset is active and moving freely, and not confined to a range. When trends reverse, the impulse, correction, impulse patterns begins in the new direction. While the strategy appears quite simple in theory, in the real world it is more difficult to implement since you must constantly be determining the direction of the trend, and whether a correction is actually the start of the new trend. Use a demo account to practise isolating impulse and correction moves. Draw the mini-channel lines on the corrections and attempt to profit from the impulse waves that follow. While intra-day examples were used in this article, the technique can be applied to any time-frame.
Mini Channel Breakout Forex Strategy
Hey, Traders. Welcome to video three of the Advanced Forex Strategies course. This is Cory Mitchell. In this video, we are looking at mini channel breakouts. This is a strategy we can use on all timeframes. This video is brought to you by Investoo.com.
So, a little review from the last video. Trend trading is where most of the money is. There are multiple ways to trade trends, but this is one that you want to have in your arsenal. It gets us in early, keeps risk small, and profits are larger than losses. It can be used on all timeframes, for day trading or swing trading.
So, an uptrend occurs when the price is making higher swing highs and higher swing lows. This should sound familiar if you watched the last video. If not, we will go through this concept of trends again in this video. Downtrends occur when the price is making lower swing lows and lower swing highs. We only trade in the direction of the trend with these strategies.
This is a relatively simple setup, but it doesn’t occur as often as we’d initially suspect. But when there is a very strong trend, it will occur frequently, and that’s mostly when we want to trade because it provides us a lot of opportunities to get in on that trend and make money. We’ll look at other trend trading strategies as well, so that no matter what the trend looks like, you have a way to trade it.
So, during an uptrend, we’re waiting for the price to pull back. We avoid trades when the trend on our timeframe isn’t clearly visible. A line must be able to connect the high point of at least four bars in the pullback. When this occurs, typically the pullback has a channel-like appearance. Sometimes, it’s not beautiful, but we at least need those four high points in the bar to pull back to be able to connect. This allows us to draw a line and a breakout point.
If it doesn’t sound clear, in a moment it will, when we look at a few examples. We buy when the price breaks above that channel in the trending direction, back in the trending direction. We’re looking for a certain look, a counter-trend move, where the breakout is clearly visible.
Once we’ve drawn that channel, our stop goes one pip below the low of the channel, following the breakout price. Once the price is broken out, sorry. We’ll place that stop one pip below the channel low. Our target, similar to the last video, we’re using the 1.6 and 2.6 times risk. So, if we have 10 pips of risk, we’re looking for our first target at 16 pips and another one at 26 pips. We do this by taking two positions instead of just one larger one. If you can afford to take two mini lots, take two positions of one mini lot each, so that you can get one out at each target.
During a downtrend, we wait for the price to pull back. We avoid trades when the trend isn’t clearly visible. A line must be able to connect the low point, in this case, of four bars on that pullback. So, we sell when the price breaks below that line. So, it will be moving back in the trending direction, and we want to get in on that.
The stop goes one pip above the . . . Sorry. That should say high, one pip above the high of the channel, because the price will be coming down. The channel will be going up. So, we want to put the stop one pip above the high of the channel. Our target is 1.6 and 2.6 times our risk.
Once again, if we can take two positions instead of one larger one, we will do that. Keep in mind from the last two videos, we want to keep risk to 1% of our trading account per trade. So, if we have a $500 account, we’re only risking $5. Pretty tough to do. But if we have a $3000 account, we’re risking $30 per trade. So, keep that in mind.
So, let’s look at a few examples. I’ve highlighted a few in the Euro/USD. A couple weeks back, we had some pretty good action going. We had the Euro flying higher, and then a big reversal back to the downside. So, this is what we talked about. When we have very strong movement, we’re going to see lots of these little mini channels.
So, here, strong move higher, proceeding from a longer term uptrend. So, you’re looking for it. Notice here, I’ve set . . . This is only three bars. So, technically this isn’t a valid setup. We want four, but we are on an hourly chart. You could drop down to a 30-minute chart. And how many bars would that be? We have three bars here on the hourly chart. That means you’d have six bars. If you get four that line up, you have a valid signal.
So, you can . . . It’s not cheating. You just drop to a different timeframe for certain setups if you see it and you want in. But basically, we’re looking for four points, just so that we know that we have a solid resistance level there. When it breaks, we know we’re [inaudible 00:05:08]. So, this one would have been a great trade here. As soon as it broke, it flew to the upside.
Here, pause again, not really . . . Can’t really draw a channel around this. We sort of could, but here we have the lows that connect. The ones on the bottom don’t really matter too much. You can put them on if you want, but we know from strategy that we’re going to be putting our stop one pip below. So, we don’t really need the channel.
So, we are going to be entering here as soon as it breaks out. We do not wait for bars to complete. As we can see, if we would have waited for this bar to complete, the price would have been way up here. As soon as it breaks that line, we get in. So, our entry point is right around here, looking at about 13.8 pips of risk here. We take targets at 1.6 and 2.6 times our risk, 13.8 times 1.6. So, our first target would be at 22.08 pips or 22.1 pips.
Then, this one is 13.8 times 2.6. So, this one would be at 35.9 pips. If you notice from the last video and from this one, typically the 1.6 target will be very near the former high. It just seems to work out that way. It will be in a close proximity to the former high. That way, if the price fails to go higher and makes a double-top type formation and then proceeds lower from here, we at least got that one target out near the former high. Because once this pops, there’s a pretty good chance that it’s going to at least go back and test this former high here.
So, we had the pop higher. It’s testing it. In this case, it worked out well. It continues to go higher. While we were in this trade, you could have had another opportunity here. One, two, three, four. We have four bars that form a little channel type here. This is one of the ugly ones I talked about. If we were to draw a line, it doesn’t really have a channel-like appearance, but this line does. That’s the one we’re looking for. We have a clearly defined level that we can watch for a breakout above. When it does, we’ll watch for the pop higher.
These are a little bit subjective. You have to be in there in real time, and you have to be able to say, all right… We had this nice strong pop higher. I do have this level. Do I want to trade it if it breaks out? Same with here. Same with here. So, we had this pop higher, a pullback. Do I want to trade this if it breaks out?
This would have been a very aggressive trade after the strong uptrend, but it is a valid signal because we have a lower low. We’ve had a number of little movements here, and the price drops below them. Then, on the rally higher, we are making a lower high. So, this is a decision you have to make in real time. Once you draw this line, the price is moving up if we go out to the very right-hand side of the chart, like this was happening in real time.
The price is creeping up. We’ve had this strong run-up. What do we want to do? We have to decide. All right. If this breaks below this line, am I going to take the short? You say it’s going to cost me nine pips of risk. Once this breakout occurs, yes, I’m going to take that trade. So, we take it. We’re looking at about nine pips of risk because we’re putting our stop one pip above the former high of the channel.
So, this was the high of the channel. This one we actually could have drawn because it does actually have a channel-like appearance. So, here’s the high of the channel. Here’s our entry point. We’re looking at about nine pips of risk if our stop goes right here.
This one would have worked out quite well going into the weekend, if we had held it over the weekend. Our initial target, 1.6 times 9, is 14.4 pips. We didn’t quite get there before Friday. So, if you have a nice broker, the next morning you would have made 35 pips instead, or on Monday morning, Sunday night.
Same with the next one, 9 pips times 2.6, which is our next target, 23.4 would have also got filled at the following open, if you have a nice broker. Some brokers may just pocket that difference. But 9 pips of risk, entry point right here on the breakout.
Here, we have one that would have worked out. We have this nice run to the downside, have the gap on Sunday, channeling higher, well-defined area here where we were looking to go short. We would have gone short right in here when the price dropped below. Stop would have been placed right about there. So, we have this nice channel-like appearance, but we would have been stopped out on it.
Just moves above our stop, and then proceeds to go in the direction we expect. This is Forex trading. We cannot avoid these trades. I don’t even try to avoid these trades because we know that they will inevitably occur. When we learn a strategy, we’re expecting that it will work about six or seven times out of ten, hopefully at least four or five times out of ten. That way, we’re making 60%, at least 60% more on our winners. So, even if we win 50-40% of the time, we still should be coming out ahead. Therefore, we do not need to try to avoid these. This is going to happen. Do not be frustrated by it. Just look for another opportunity.
So, a little review. Every trade has a stop and a target. Put these targets out when you place the trade. Only risk 1% of your account in any one pair. That includes your taking multiple positions instead of one larger position, but you’re still limited to that 1%. That way, even a string of losses won’t significantly draw down your account.
Only trade in the trending direction, following a pullback. That pullback must have a channel-like appearance. Remember, it can be ugly, but you at least need to have that clearly defined breakout point. If it’s not a clearly defined breakout point, don’t take the trade.
Place a stop above the high of the channel for a downtrend. Place the stop below the low of the channel for an uptrend. When possible, keep risk below 1%, split up your positions, and take profit at two targets. These targets are 1.6 and 2.6 times your risk. Trading involves substantial risk of loss. Only trade with capital you can afford to lose. Trading with capital that you absolutely need will result in an outcome that you do not like.
Test out strategies before using them to make sure you’re actually able to implement them and that they work for you. Use a demo account. Trade this. Work on it. Do it in real times that you can actually see these channels forming. Trade the breakout. Set your stops. Set your targets. You can get good at it before actually using real money. Until next time, happy trading.
More About Adam
Adam is an experienced financial trader who writes about Forex trading, binary options, technical analysis and more.
Breakout Trading Strategies 101
Learn Channel Breakout Trading Strategies Step By Step
Today I’m going to show you how to incorporate simple channel breakout trading strategies into our trading plan.
Often times traders transition from short term trading to day trading using simple methods such as channel breakouts.
I encourage beginners to start off with simple methods and only delve into complex methods when they are consistently profitable.
The channel breakout is one of those basic strategies that beginners seem to gravitate towards when they first start out experimenting with different trading methods.
Increasing The Odds In Your Favors
One of the reasons why breakout trading strategies are popular with traders is due to increased volatility and momentum that accompanies the breakout the great majority of time.
Although this can substantially increase your profit potential it can at the same time increase your risk of loss just as easily.
Moreover, breakout trading strategies are known for false breakouts, which produce low percentage of winning trades compared to losing trades and many beginners prefer methods that can provide them with high percentage of winners; this helps improve self confidence and assures the trader that they are on the right track.
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Avoiding False Breakouts When Day Trading
This tutorial is going to show you some basic filters so that you can learn how to trade intra-day breakouts while decreasing your percentage of false breakouts that occur so frequently.
Make sure you follow each step along the way and always make sure you are trading in the direction of the main trend regardless of the time frame you chose to trade.
Also note that this method applies to stocks, futures, commodities and currency contracts.
Market Must Be Trending
The first thing on your list should be a trending market. The biggest reason for false breakouts is taking signals against the main trend.
By following the main trend you will increase your profit ratio and increase your percentage of winners to losers.
So the first step is to find stocks or other markets that have been trending strongly for at least a few weeks.
In this example you can clearly see the stock trending strongly down after a classic reversal double top pattern developed.
Stocks That Recently Reversed Make Great Candidates For This Strategy
Once you identify the stocks or other markets you need to begin monitoring short term support and resistance levels for a strong gap in the direction of the trend.
The best gaps will occur at the opening bell with strong momentum and volatility.
The Gap Was Very Wide And Carried Strong Momentum
Once your set up is triggered you place a market order to enter the trade. Make sure the gap is accompanied by strong volume and the momentum is pushing in only one direction.
You can usually tell by looking at the opening and seeing how far against the opening price the stock is going.
In this particular case the stock moved almost continuously down after the opening bell. There’s very little volume buying this stock at this point.
Monitor The Market Using Intraday Charts When Your Placing Your Entry Order
Once you enter the position you need to place a stop loss or a buy stop in this case because you’re selling short.
The stop is placed half way between your entry point and the previous closing price. For example if the difference between the previous closing price and the opening price this morning is $3.00, you would add $1.50 to your entry price and that would be your stop loss or buy stop order in this case.
Profits targets for this method are MOC or Market On Close.
This means that your position will be liquidated within a minute or two of the closing bell. This is called the closing range and during this time resting orders are filled.
Be Patient And Let The Trade Develop Till The Closing Bell
Breakout Trading Strategies Long Example
I start out finding a stock that’s been trending strongly in one direction. The better the trend the higher the odds that the breakout will be going in the right direction.
Avoid trying to pick market tops and bottoms when you’re just starting out and go with the main trend.
The Stock Has A Well Developed Trend Under Way
Once you identify a strong trend, you should monitor the daily support and resistance levels. If the trend is up you only need to pay attention to the resistance level and if the trend is down you need to pay attention to the support levels.
These are critical breakout levels so you should know exactly where they are located.
The Breakout Should Be Very Directional
Don’t be afraid to enter the position that’s moving quickly. Often times I see traders freeze up when markets are opening and positions are moving quickly.
You need to be prepared to execute and know exactly what you’re going to do after the opening bell.
Plan ahead and keep a detailed notebook with your support and resistance levels. ‘
In this example the move is fast and carries strong momentum in one direction.
You should also look at the market from a daily chart and intra-day charts so that you can monitor the trading action closely while you’re positioned in that market.
A Wide Gap Demonstrates Strong Build Up Of Buying Pressure
Once the position is filled your stop loss is placed half way between your entry and the previous day’s closing price.
The great majority of the time your trade will not go back to that level if it’s working out. This provides you with a reasonable degree of protection in worst case scenarios.
Don’t forget to maintain the position till the closing bell to gain maximum opportunity for movement in your direction.
The Stop Loss Placed Half Way Between The Previous Close And The Current Opening Price
That’s it for today’s trading tutorial. I hope you enjoyed this short tutorial about breakout trading strategies. For more on this topic, please go to: Short Term Trading Indicators – Bollinger Bands As Trend Filter and Retracement Entry Methods Anyone Can Learn
Wishing you the best
By Roger Scott
Breakout Trading Strategy Used by Professional Traders
In today’s article, we’re going to talk about breakout trading. We will cover some of the best trading tactics used to trade breakouts by professional traders. Breakout trading is one of our favorite entry types when trading the markets. Our team at Trading Strategy Guides has developed the best breakout trading strategy. It tells you right away when you’re wrong, which means that you can minimize losses. You can also read our strategy, how to use currency strength for trading success, for more information.
Minimizing losses is one of the hardest parts to achieve in trading. Although, with our breakout trading strategy, it should be easier to understand. To be a successful trader, you must minimize losses and maximize profits.
To achieve profitability, we encourage you to read our top-notch guide, How to Make Money Trading – 2 Keys to Success. The guide has received a lot of positive feedback from our trading community.
The breakout trading principles taught in this article are universal to all markets. You can apply the same breakout trading techniques to stocks, Forex currencies, bonds, and commodities. You can also apply these principles to the cryptocurrency market, no matter the time frame. If you would like to learn more about Multiple time frame analysis, read our article.
In order to trade breakouts, you need to understand what breakout trading is. This seems obvious, but far too many traders forget about the core basics of breakout trading. For more information, read my personal trading plan reviewed by Kimm Krompass.
Let’s move forward and get into the basics of what breakout trading is and how it can help you make money when trading.
What is Breakout Trading?
In order to understand breakout trading, it is important to remember two types of breakouts. Our team at Trading Strategy Guides has identified two types of breakout trading setups:
- Support and Resistance breakouts
- Swing high and Swing Low breakouts
So what is breakout trading?
Breakout trading is an attempt to enter the market when the price moves outside a defined price range (support or resistance). However, a genuine breakout needs to be accompanied by increased volume.
Read Support and Resistance Zones – Road to Successful Trading, to learn how to identify support and resistance.
A chart speaks more than words can do. Here is what support and resistance breakout trading should look like:
Please take out a piece of paper and a pen. What you’re about to learn next is crucial and needs to be immortalized.
In breakout trading, a genuine breakout is followed by a big, bold candle. The candle closes well above the support resistance level. In the figure above, this can be noticed quite instantly. As a rule in breakout trading, the bigger the breakout candle, the better.
What is breakout trading of a swing high and swing low?
We apply the same rules as the support and resistance breakout trading, but with an additional filter. What is this filter? We only want to breakout trade the setups that offer us the best outcome. This is because not all swing highs and swing lows are created equal.
In this regard, we’re only going to attempt breakout trading the swing high and swing low with a “V” shape form. A “V” shape form swing high is defined by a strong rally, quickly followed by a strong selloff. In reverse, the same is true for a “V” shape form swing low.
A price chart will clear any confusion you have about what a breakout trading with a “V” shape form swing is.
You might believe this in itself is an amazing breakout trading strategy. Even without adding anything else to the strategy. But this isn’t true. The biggest downfall with breakout trading is that there are too many false breakouts.
Our team at Trading Strategy Guides has developed the best breakout trading strategy. The strategy differentiates a false breakout and a genuine breakout. We have tested many technical indicators to develop the best breakout trading strategy. No matter how many backtesting we have done, one technical indicator always comes first.
Before we move forward, we must define this mysterious technical indicator. You’ll need to understand how to use it for the best Breakout Trading Strategy:
The only indicator you need is the:
Volume Weighted Moving Average (VWMA): The VWMA is a simple technical indicator used for volume analysis. The VWMA is one of the most underused technical indicators only professional traders use. VWMA looks like a moving average, but instead, it is based on volume. It’s not just a price based moving average.
The VWMA is located on most trading platforms. Once it is applied to the chart, it should look like the figure below:
Now, before we go any further, we always recommend taking a piece of paper and a pen. Then note down the rules of the best Breakout trading strategy.
Let’s get started.
The Best Breakout Trading Strategy
(Rules for a Buy Trade)
Step #1: Identify a clear price range or a “V” shape swing high and mark that price level on the chart.
The first step of the best breakout trading strategy requires identifying the price level. It can ultimately be your breakout trading level. This is the most important part when attempting to breakout trading. This is why we only want to recognize significant and clear levels.
Do you want to boost your knowledge in identifying these levels? We recommend spending 5 minutes to read, Support and Resistance: What Is Going On at These Critical Areas. This article will teach you methods to help identify the right support and resistance level.
EURUSD 1-Hour Chart
The resistance level we have identified in the figure above is significant. If you look closely, you’ll notice each rejection off of the resistance level left behind a minor “V” shape swing high. We had strong rallies that quickly faded away.
These findings bring us to the next step of our best breakout trading strategy.
Step #2: Wait for a break and a close above the resistance level
Once the resistance level has been identified from there on, it’s just a game of patience and waiting.
We need a breakout and breakout candle to close above our resistance level. This is a sign that the bulls are in control.
But we’re not done yet. We still need confirmation from the VWMA indicator. This will give us the green light to pull the trigger on this breakout trading.
Step #3: Buy at the breakout candle closing price only if the VWMA is stretching up.
The final step of the best breakout trading strategy is the needed confirmation from the VWMA. We need to visually see the VWMA stretch up. And the moving average needs to have a deeper inclination to the upside.
Let’s check this on the price chart.
This can be clearly visualized on the price chart. Prior to the breakout, the VWMA only gradually moved higher after the breakout happened. We saw the VWMA aggressively moving higher, which showed a strong presence of volume behind the breakout.
After we bought, we still needed to define where to place our protective stop loss. We also needed to know where to take profits. This brings us to the next step of the best breakout trading strategy.
Step #4: Place your SL below the breakout candle and take profit when you see a break below the VWMA.
It was obvious to place our protective stop loss just below the breakout candle. This is because once we break below the candle that initiates the breakout, it proves to us that this is a false breakout. No real buying is taking place, so we better back out of the trade.
Our take profit technique is intuitive because a break below the VWMA suggests there are no more buyers to sustain the current rally. We want to book the profits at the early sign the market is ready to roll over.
Note** The above was an example of a buy trade… Use the same rules – but in reverse – for a sell trade. In the figure below, you can see an actual SELL trade example, using the best breakout trading strategy.
One of the main advantages of the best breakout trading strategy is that you’re trading with momentum on the back. This means two things: instant gratification. Secondly, you’ll learn fast whether or not your breakout trading idea will work.
We have one final tip. If the breakout has as a catalyst a big new risk event, then it’s more likely that big institutional money is behind this breakout. When you have the technicals and the fundamentals working for you, the trade success profitability increases. Below is another strategy called trading volume in forex.
Our step by step guide into news trading can be very helpful here, so please don’t miss the opportunity to read it.
Thank you for reading!
Please leave a comment below if you have any questions about the Breakout Trading Strategy!
Also, please give this strategy a 5 star if you enjoyed it!
(36 votes, average: 4.42 out of 5)
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Early Morning BreakOut Strategy
- Post # 1
- First Post : Aug 31, 2020 11:03pm Aug 31, 2020 11:03pm
I want to share with you my EA in order to test and improve, your comments will be so much appreciated.
EARLY MORNING BREAKOUT is a momentum Break-out Expert advisor, based on High and Low prices during the Asian Session. The EA detects perfectly the trend and uses many filters to avoid false momentum breakout.
EARLY MORNING BREAKOUT recommended trades using market orders on hourly TimeFrame. Each deal is protected by stop orders (Stop Loss ) and uses Trailing Stop to maximize profit.
The trading robot has been developed considering trading on a real account.
Please don’t expect many trades per day , the robot plays less trade.
To run the Expert advisor on many pairs, you should attach it in every chart and change the magic number.
- Trading terminal: MetaTrader 4.0.
- Pair: Any pairs.
- TimeFrame = H1
- Spread = 3 Or Below
- Leverage: 1:50 and higher.
- Account type: micro, mini or standard.
No Need to change default settings, change only TradeSize, StartTime, EndTime, EndPending and StartTimeLondon.
*EA StartTime must be your MT4 terminal Frankfurt Open Time -1.
Example: Frankfurt market open at 2:00 AM and your MT4 terminal says 9:00 AM, you must apply the setting for StartTimeFrankfurt :9
StartTime must be always hour before frankfurt market Open, in our example StartTime: 8
EndTime and EndPending should be the same for example :12
Pairs recommended are : EURUSD, NZDUSD, AUDUSD and AUDCAD
Thanks for help and once again your comments will be so much appreciated.
Nice Trading for all
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