Forex Breakout Strategy: Simple Trade, Simple Profits
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 changed 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 StrategyPls read through the explanation 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.
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See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com
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