The double doji foreign exchange breakout trading technique is an improved breakout technique that is able to identify breakouts in the market that are not withstanding the movement price takes.
This technique with the aid of the HMA_v2 and the Fisher_m11 custom indicator will identify the breakout.
1. HMA_v2 with default setting and Fisher_m11 (default setting) are the only two MetaTrader 4 indicators utilized in this trading strategy.
2. The recommended time frame is five minutes, fifteen minutes, thirty minutes, one hour and four hours.
3. Any endorsed trading sessions can be utilized in this technique.
4. Applicable on any currency pairs
Purchase Exchange Instance
Purchase Entry Rules
Initiate a purchase entry when the following rules are observed:
1. If a double doji creates on the activity chart, market the high and low borderlines of the dojis and pause for the next bar to end. If the next bar ends on top of the upper borderline of the double doji, it is a prompt to purchase.
2. If the HMA_v2 custom indicator creates light blue dots beneath price candlesticks, it is a sign that price is in an upward trend.
3. The Fisher_m11 custom indicator candlesticks changes lime and are in line on top of the 0.00 level, it is a sign that price is bullish.
For the stop-loss of the purchase entry, position the stop-loss beneath support.
Take-Gain for Purchase Entry
Initiate a take-gain when he following conditions is observed:
1. If a change in direction of price action design creates for example a double doji with the third bar bypassing beneath the range of dojis (it is obviously an auction, thus an exit for all existing bullish orders).
2. As displayed in the chart above, if a tomato colored dots of the HMA_v2 custom indicator creates on top of the price candlesticks, it is a prompt to exit or take-gain.
3. If the Fisher_m11 custom indicator candlesticks alternates and creates red colored candlesticks beneath the 0.00 level, it is a sign to exit or take-gain.
Auction Entry Rules
Initiate an auction entry when the following conditions are observed:
1. If a double doji creates on the activity chart and the 3rd bar ends beneath the lower borderline of the double doji, an auction is highly recommended.
2. If the HMA_v2 custom indicator creates tomato dots on top of the price candlesticks, it is a sign that price is in a downward trend.
3. If the Fisher_m11 custom indicator candlesticks changes red and is in line beneath the 0.00 level, price is said to be bearish.
Take-Gain for an Auction Entry
Initiate a take-gain or an exit if the following rules are observed:
1. If a change in direction of the design is identified while riding the continuing trend, it is recommended to exit or take-gain.
2. If the HMA_v2 custom indicator creates light blue dots that are somewhat positioned beneath the price candlesticks, it is a prompt to exit or take-gain.
3. If the Fisher_m11 custom indicator creates a lime colored vertical candlestick, it is an indication that price is alternating upwards i.e. exit or take-gain.
Utilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with utilizing any strategy presented on the site. It’s not recommended to utilize this strategy on the real account without testing it on demo first.