Thread: Forex Breakout Strategy: Simple Trade, Simple Profits

Forex Breakout Strategy: Simple Trade, Simple Profits.

Forex Breakout Strategy: Simple Trade, Simple Profits.


FOREX BREAKOUT STRATEGY

Forex Pair: Usd Chf
In Forex trading, there are various forex trading strategies.
I would like to show you a forex breakout strategy as shown in the chart above.
It is simple yet highly powerful.
In the chart above, we see a series of bearish bars (red bars) -> marked by the yellow arrow pointing down at the top of the picture.
This series of price action bearish bars represent the selling momentum in the market. And the selling is gaining momentum with the increasing number of bearish bars.
Therefore, we will be watching the chart for a chance to trade it down, considering that the trend MAY have change from an uptrend to a downtrend.
Forex Breakout Strategy: Simple Trade, Simple Profits

Soon after, it formed a big long price action bearish outside bar as marked by the yellow circle.
(This confirms the downtrend as it has broken the previous lows of the previous uptrend)
With the big long price action bearish outside bar, and the previous series of bearish bars.
- It confirms the selling momentum in the market is very strong.
Immediately after the bearish outside bar, it forms 2 smaller inside bars after which.
Forex Breakout Strategy: Simple Trade, Simple Profits

What i see here is a setup for a forex breakout strategy trade.
- Since the selling momentum is so strong, and with a price action bearish outside bar. We can place a pending sell order below the bar.
Therefore, i will place a pending sell order as marked by the yellow dotted line.
And my stop loss is above the previous bars opening and closing. (marked by the orange line SL)
Our First take profit target will be the previous low (marked by the orange line TP1)
And our final take profit target will be at the next low (marked by the orange line TP2), which also coincides with our 150 ema.
Forex Breakout Strategy: Simple Trade, Simple Profits

Forex Breakout Strategy
Pls read through the explaination while looking a the charts for at least 2 times to fully understand what i meant.
I hope you’ve learnt how i would have entered on the above situation (forex breakout strategy) and how you can add this method to your future trading methods.

It’s a lovely strategy to follow for anyone but we must be careful to first learn well about it otherwise if we follow it without any prior experience than we could get into serious problem. I generally like to try out things on demo account first and if it works tan I switch to real and thankfully with having a broker like OctaFX which has cTrader platform, it makes thing so easier for me as I can switch accounts within seconds in one click and also get very smooth conditions as well.

If you want to become successful in this market, you need to make a profitable strategy. WIthout any strategy it is quite impossible to make profit from this risky market. Making a good strategy can make you rich. A reliable broker like Forex4you can help you to make a profitable trading strategy. As a trader, I can suggest you to make a simple strategy to trade in this market. Because sometimes complicated strategy can confuse you. You can face losses with your complicated strategy.

Technical analyzers can make the best use of market breakout opportunities. Usually a trader can go for short positions during this breakout. Eurotrader allows traders with a reliable trading platform on which a trader can smoothly execute trades.

Breakout strategy is one of the weapons of technical analyzers. Through breakout, the market breaks a certain range of the market. FXOpulence offers a reliable mt5 trading platform including all necessary trading tools and narrow trading spread in most of the pairs.