The breakout foreign exchange trading strategy is established on the price action trading. This trading strategy allows one to get prime direction of price when it is beginning to create its trend or market movement for the day.
Here are tips you need to realize:
1. The Frankfurt Market begins at 2:00AN Eastern Standard Time (7AM GMT).
2. The London market begins one hour late.
This is the European foreign exchange session and the fx market begins its day first in Europe.
1. The recommended currency pairs for trading are GBPUSD or EURGBP.
2. The recommended time frame for trading with this strategy is 1hr and 15 minutes (this is a multi-time period trading establishment).
3. None of the forex indicators is required while utilizing this strategy.
How to Exchange
1. Begin with one hour time period chart.
2. Then look out the “price range” from 1pm EST to 2pm EST which illustrate you to observe for the highest peak and the lowest bottom of the price in that zone in that period.
3. Then sketch parallel horizontal lines via those two price levels – this will form a tunnel.
4. The fourth step is very crucial: proceed to changing to a five minutes chart and pause and observe to notice if a five minute bar surround in the exterior of the tunnel.
5. If it surrounds higher up of the highest end, you position a purchase order.
6. If it surrounds beneath the lowest end, you position an auction order.
7. Purchase order can be at market order or purchase stop order. An auction order can be a market order or an auction stop order.
8. Position your stop-loss at least five pips in the uttermost of the tunnel.
This is the one hour foreign exchange chart where you start your exchanging analysis following the steps explained above:
This five minute chart beneath is where you exchange. That is where you pause patiently to observe any five minute breaks out of the tunnel and if it trigger above it, you position a purchase trade and if it triggers beneath it, you begin an auction trade.
Your take-gain aims you be three times what you risked. In purchase trade, establish your take-gain within the prior swing high (peak) or in auction then utilize a prior swing low point (bottom).
Utilize this strategy at your own risk, if done well you’ll be looking for vacation rentals right away, if not then… WindsorForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.