Wave breakout FOREX strategy

Classical approach to reading markets created one of the forex strategies that has been used  for a long time on many different markets, by many sucesfull traders. To trade it efficiently, knowledge of horizontal supports and resistances is necessary. 

 

This forex strategy is extremely scalable, flexible and yet robust. It can be used on any timeframe and any currency pair. Exits are calculated based on signal size and therefore remain adaptable to market circumstances.

 

Rules of forex strategy:

 

Identify the trend on current timeframe. To do so, we can use combination of moving averages or draw our trendlines directly on the forex chart

We look for the price to reach new low within current downtrend / new high within uptrend. To confirm new extreme we wait for next two candles to be closed on the chart. If they have not breached newly created extreme, signal is cofirmed. Fractals forex indicator can be used for easier visualisation.

After confirmation of signal. We place pending order at newly confirmed extreme, and we enter the position in the direction of the breakout.

 

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit.Automatically copy the traders that are already profitable.

 

Exit strategy:

After postion entry we place protective stop loss at the end of the retracement (wave) that was created after trend reached its highest/lowest point and position entry. In other words Stop Loss is same size as the wave that created at complete signal.

 

Take profit:

 

Scalping approach: If you prefer to collect frequent winning trades, preset the take profit to 3 – 6 pips. If you did your homework in trend identification correctly, you will experience winning trades that are 10 -30 * more frequent than losers.

 

Conservative: Risk reward ratio of 1:1. Take profit is same size as SL. Frequency of winners will very much depend on your ability of correctly determining the trend.

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THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

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