Forex Breakout Strategy: Simple Trade, Simple Profits.

[kammraz]

Forex Breakout Strategy: Simple Trade, Simple Profits.

FOREX BREAKOUT STRATEGY

Forex Pair: Usd Chf
In Forex trading, there are various forex trading strategies.
I would like to show you a forex breakout strategy as shown in the chart above.
It is simple yet highly powerful.
In the chart above, we see a series of bearish bars (red bars) -> marked by the yellow arrow pointing down at the top of the picture.
This series of price action bearish bars represent the selling momentum in the market. And the selling is gaining momentum with the increasing number of bearish bars.
Therefore, we will be watching the chart for a chance to trade it down, considering that the trend MAY have change from an uptrend to a downtrend.
Forex Breakout Strategy: Simple Trade, Simple Profits

Soon after, it formed a big long price action bearish outside bar as marked by the yellow circle.
(This confirms the downtrend as it has broken the previous lows of the previous uptrend)
With the big long price action bearish outside bar, and the previous series of bearish bars.
- It confirms the selling momentum in the market is very strong.
Immediately after the bearish outside bar, it forms 2 smaller inside bars after which.
Forex Breakout Strategy: Simple Trade, Simple Profits

What i see here is a setup for a forex breakout strategy trade.
- Since the selling momentum is so strong, and with a price action bearish outside bar. We can place a pending sell order below the bar.
Therefore, i will place a pending sell order as marked by the yellow dotted line.
And my stop loss is above the previous bars opening and closing. (marked by the orange line SL)
Our First take profit target will be the previous low (marked by the orange line TP1)
And our final take profit target will be at the next low (marked by the orange line TP2), which also coincides with our 150 ema.
Forex Breakout Strategy: Simple Trade, Simple Profits

Forex Breakout Strategy
Pls read through the explaination while looking a the charts for at least 2 times to fully understand what i meant.
I hope you�ve learnt how i would have entered on the above situation (forex breakout strategy) and how you can add this method to your future trading methods.
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Ezekiel Chew
Asia #1 Forex Mentor

a good strategy although it does seem a bit too difficult for me plus i dont trade with usdchf. but i will try to test this with my demo account. it never hurt to learn new things everyday. hopefully i will learn lot other techniques as well. please share them if you do have any good one.

[cempetrader]

A breakout signal occurs when the price breaks a significant high and makes a new high. This is the definition. Another breakout occurs when the price is significantly lower resting and making a new low. Magic Breakout Forex Strategy is a simple system, It is easy to use, but gives impressive results in forex trading.

[sholeh0500]

I've not replied to any of your posts, but I feel I need to reply to this one, as some of your concepts may bring harm to readers. I suggest you have more discussions with your mentor in the area of technical analysis. Even with the benefit of hindsight, I find your explanation very hard to accept. I'm not trying to discredit your effort, but I want readers to have a clearer understanding of this topic, and start to reason in their minds why price moves the way it does.



Everything is about probability and possibility. I'll just write something very different from what you wrote, and challenge readers to look at the same picture from various perspectives.

When the first candle closes below the uptrend line, there is a possibility that the trend may be coming to an end. This whole sequence of events should not be 'breakout strategy' where we expect a trend to develop, but 'end of trend consolidation'. The end of a up trend may not lead to a down trend, it simply means end of trend. The 'series of bearish bars' is due to the failed retest of the High + previous break of up trendline + some profit taking exit level for those riding the up trend. We can draw a Fib projection/extension and lookout for a short entry (to play a range and not a down trend). Because I'm drawing on your picture, I can only estimate the Fib levels visually, those are the exit targets, with the better reward/risk at the support level. Aggressive traders can short at the Fib entry level, while conservative traders can wait for the candle to close below the uptrend line to open short. 'The big long price action... bearish outside bar', please, bar reversal or candle reversal patterns are only found at the extreme end of the swings. That bearish action is not selling momentum, the fact is, there are no buyers at that price because everybody wants to buy at a better price (Support).

[abnoman]

Bro this is very interesting thing . than u very much for giving us this strategy with picture. and i hope that will help us more.

Thanks

[riky]

yes i agree when a breakout occurs where the buyer and seller equally strong

and where the line of supply and demand that is formed will be broken then here we can to exploit the situation for entry positions

with breakout trading the trader can do because it can analyze precisely because the position is easy to read so they can decide to buy or sell

[darmaspirit]

yes i agree when a breakout occurs where the buyer and seller equally strong

and where the line of supply and demand that is formed will be broken then here we can to exploit the situation for entry positions

[JBP]

This strategy is very simple. This is in the area, such as price action since the bar so bearish as the main entrance. But I have not understood the function of the 150 EMA in this table. Is this a sign of an input or output? That means that we put our TP to EMA? and how is to stem the loss of this strategy?

[asiexpert]

thanks a lot for sharing such a simple strategy to earn the profit in the forex trading. i want to use this strategy but i shall get more information about this strategy before applying.

[pintu01]

This thread is very much interesting I will like to trade with this. But if you could give us some more example with chart then it would be very profitable for me. Please post some more charts here. The market does crazy things often, so don�t get married to any one trade. It�s just a trade. One good trade will not make you a trading success; rather it�s monthly and annual performance that defines a good trader..

[BaHaaFxTr]

its look like an interesting strategy but I don't like the strategy that work on one pair but the depending on the barrish signal of the candlestick it's good point cause too many people just forget that they can make good profit just if they follow some strategy depend on candle sticks like this so thank u for sharing it with us