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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EMA slow trending above EMA fast, which indicates downtrend. We will take short entry only.
Three consecutive candles closed, with highs and lows within defined range of 10 - 50 pips.
Sell limit order is placed at top of the range upon third candle close.
Take profit 60 pips and stop loss 30 pips. Use trailing stop if possible.
BUY
EMA slow trending below EMA fast, which indicates uptrend. We will take long entry only.
Three consecutive candles closed, with highs and lows within defined range of 10 - 50 pips.
Buy limit order is placed at bottom of the range upon third candle close.
Take profit 60 pips and stop loss 30 pips. Use trailing stop if possible.
