1H Fake breakout FOREX strategy

With this excellent forex strategy, we will be looking for a fake breakout. Fakeout is identified on flat trading range, consisting of three consecutive candles. System offers amazing risk reward ratio, as it effectively picks tops and bottoms in price structure of the instrument. We will also utilize pending orders, to lower the hesitation upon the entry. To remove any mistakes and delays completely, get the free expert advisor provided with this forex strategy. Robot will also allow you to backtest, optimise and trade this system. 

 

Used tools and indicators

  • Trend: Identified by EMA (exponential moving averages 200 and 50). 

  • Trading range: Three consecutive candles trading in flat range (between 10 and 50 pips)

  • Pending orders: Sell/ Buy limit orders placed to follow the trend at top/bottom of the range. Untriggered pending order remains valid for 24h.

  • Take profit: 60 pips

  • Stop loss: 30 pips (preferably use trailing stop based on last closed candle). 

 

Rules


SELL

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  1. EMA slow trending above EMA fast, which indicates downtrend. We will take short entry only. 

  2. Three consecutive candles closed, with highs and lows within defined range of 10 - 50 pips. 

  3. Sell limit order is placed at top of the range upon third candle close. 

  4. Take profit 60 pips and stop loss 30 pips. Use trailing stop if possible.

 

BUY

 

  1. EMA slow trending below EMA fast, which indicates uptrend. We will take long entry only. 

  2. Three consecutive candles closed, with highs and lows within defined range of 10 - 50 pips. 

  3. Buy limit order is placed at bottom of the range upon third candle close. 

  4. Take profit 60 pips and stop loss 30 pips. Use trailing stop if possible.
     

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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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