Single trendline breakout FOREX strategy

What do you really need, to find the best entry within trend in forex? The answer is, end of correction going against the trend. If you enter just at the end of the correction you are in great position to ride the trend.

 

This forex strategy uses sloping trendlines drawing to identify correction (minor trend) within major trend. Trendline drawing is also used for stop loss and take profit calculation. Additional forex indicator MA (moving average) helps us to separate downtrend from uptrend. To understand wave nature of forex learn more about Elliot waves and fractal character of Elliot waves.

 

Rules of the forex strategy

We choose any major currency pair with proffered timeframe 15 min – 4 hours.

We plot SMA 200 (Smoothed moving average) in the chart.

 

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Sell order:

 

Price trending below SMA 200 (downtrend).

We connect three lows in the correction, creating upwards sloping support trendline (sloping in the opposite direction against the trend).

Angle of the slope is irrelevant, same as upper (resistance) trendline. Therefore, forex pattern that lays behind our sloping trendline may vary and is of no interest for us.

After connecting three lows, thus creating support, we wait for strong downward candle penetrating support and closing below it.

We enter on candle close, placing protective stop loss above the high of correction.

First low (starting point of our trendline) will mark the price level at which we place our take profit.

 

Buy order:

 

Price trending above SMA 200 (uptrend).

We connect three high in the correction, creating downwards sloping resistance trendline (sloping in the opposite direction to trend).

Angle of the slope is irrelevant, same as bottom (support) trendline. Therefore, forex pattern that lays behind our sloping trendline may vary and is of no interest for us.

After connecting three highs, thus creating resistance, we wait for strong upward candle penetrating resistance and closing above it.

We enter on candle close, placing protective stop loss below the low of correction.

First high (starting point of our trendline) will mark the price level at which we place our take profit.

 

 

 

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“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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