MagicBreakout Forex Strategy. A system that allows you spot price breakouts in the market will eventually lead to great wins and this is obviously the yearnings of every trader. We have designed a strategy that takes advantage of basic indicators, with an intelligent approach, for just about anyone in todays marketplace. MetaTrader4 Indicators: CycleIdentifier.ex4 (default setting), EMA24 High, EMA24 Close, EMA24 Low. Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day. Recommended Trading Sessions: Any. Currency Pairs: Any pair. Enter a buy order if the following indicator or chart pattern gets displayed: If price opens and closes above the magenta waves of the EMA24 High, EMA24 Close & EMA24 Low indicator (refer to Fig. 1.0), price is said to be pressured higher and a buy trigger is recommended on the next candle open (denoted by the red horizontal line). If the lime vertical bar of the CycleIdentifier.ex4 custom indicator is aligned below the 0.00 level as illustrated on Fig. 1.0, price is said to be on its way up i.e. a bullish signal. Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support. Exit Strategy/Take Profit for Buy Entry. Exit or take profit if the following rules or conditions take precedence: If price closes below the middle wave of the EMA24 High, EMA24 Close & EMA24 Low indicator, it is a forewarning of an impending price reversal, hence an exit or take profit is advised. If the red vertical bar of the CycleIdentifier.ex4 custom indicator takes up position above the 0.00 level as seen on Fig. 1.0 during a bullish trend, it is a call to exit or take profit according. Enter a sell order if the following holds sway: If price opens and closes below the magenta waves of the EMA24 High, EMA24 Close & EMA24 Low indicator as depicted on Fig. 1.1 price is said to be pushed lower and a sell alert is advised on the next candle open (denoted by the red horizontal line). If the red vertical bar of the CycleIdentifier.ex4 custom indicator gets aligned above the 0.00 level as seen on Fig. 1.1, price is said to be on its way down i.e. a bearish signal. Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance. Exit Strategy/Take Profit for Sell Entry. Exit or take profit if the following true: If price closes above the middle wave of the EMA24 High, EMA24 Close & EMA24 Low indicator during a bearish trend, it is a forewarning of an impending price reversal, hence an exit or take profit is advised. If the lime vertical bar of the CycleIdentifier.ex4 custom indicator takes up position below the 0.00 level during a bearish trend, it is a call to exit or take profit according. About The Trading Indicators. The CycleIdentifier.ex4 is a custom indicator that is used in gauging cycle tops and bottom as they happen. The indicator is a trademark of Roy Kelly and is copyrighted by Roy Kelly. The EMA24 High, EMA24 Close and EMA24 Low are essentially exponential moving averages set at varying periods and applied to high, close and low or the respective periods. Related Posts. MMR Bands Forex Trading Strategy. BBands Stochastic Forex Trading Strategy. Cusiv Moving Envelopes Forex Trading Strategy. Parabolic Cronex Forex Trading Strategy. Leave a Reply: Top Forex Trading Software. Like Us On Facebook. Download all Quality Metatrader 4/5 Indicators, EA, Trading Strategies and Forex Systems for FREE! Copyright 2018 by FXTSP.Com. Download The Bollinger Band Bounce Trading Strategy For FREE! Combines Price Action And Market Volatility To Help You Identify Profitable Entries And Exits Quickly and Accurately. Up To 100 Pips Per Trade With Low Risk Includes Entry, Stop-Loss And Take Profit Rules Learn And Trade This Strategy In only 10 Minutes. Breakout-55. Breakout-55 – Strategy that use of just the 45 period EMA and no other indicators. It works on the concept of break out and is very simple. However, only experienced traders are better suited to trade this strategy as break outs can often result in a fake out with price reversing back to its previous trend. This strategy works on both H4 and daily time frames and therefore it is not an intraday strategy. Breakout-55 Strategy Rules. Price closes above the 55 EMA Second candle after the close should also be bullish Buy on the third candle Set stop loss to a few pips below the 55 EMA Take profit will be 60 80 pips if using the H4 time frame or 150 200 pips if using the daily time frame. Price closes below the 55 EMA Second candle after the previous close is also bearish Sell on the third candle Set stop loss to a few pips above 55 EMA Take profit would be 60 80 pips if using the H4 time frame of 150 200 pips when trading on the daily time frames. Price breaks below the 55 EMA After two bearish candles, a sell order is placed with a 80 pips in take profit and stops placed just above the 55 EMA Trade results in a profit. Price breaks above the 55 EMA After two consecutive bullish candlesticks, a buy order is placed with 80 pips in take profit and stops placed just below the 55 EMA Trade results in a profit. The 55EMA breakout strategy is one of the simplest break out trading strategy that works best on H4 or daily charts. However, despite the simplicity, this strategy requires quite some experience in knowing how to identify a break out from a fake out. Simple Breakout Strategy in Forex : Pop ‘n’ Stop Trades. How to trade the breakout in forex Part 1: Upside Breakout. We’ve all been in the situation where we are watching price trade in a tight range , waiting to trade the breakout from that range. Our reasoning perfectly logical is that since price usually breaks out of a tight range with a violent move in one direction or the other, we could make a stack of money by getting on board that move early. Most of the time, what happens in this situation is price gets away from us: even as we watch, it bursts through the range perimeter and heads off like a sky rocket (or falling rock if it’s going down). We look at all the pips mounting up and think “I’ve missed a great move again!” After that, the temptation to trade the breakout changes into a temptation to chase price, with usually disastrous consequences. We jump into the trade once it is underway and watch as the move begins to slowly stall and then reverse, taking us out for a loss. The urge to trade breakouts is natural enough. We all want to hit the ball out of the park every once in awhile. But for most traders, most of the time it simply doesn’t work. The following strategy is a suggestion for those who want to try trading breakouts. It attempts to build safety into the trade by combining price action with the Rejection Bar Candlestick pattern. The image at the right above shows price breaking out of a range at the beginning of a trading session (the blue area beginning near the left of the screen). We may have no way of knowing what caused price to break to the upside. Perhaps it was a news announcement, perhaps it was simply a collection of large players moving into long positions. Whatever the cause, price “ popped ” out of the range and then temporarily “ stopped ” before resuming its upward move. This is why it is referred to as a Pop ‘n’ Stop Trade. The area is indicated by the first white circle. At this point, we see two bullish rejection bars forming above and rejecting from a round number (grey dotted line). Usually, when price bursts out in one direction with a long, fast candle like this, we can expect some retracement back to the point where price exited the range. This is simply because the fast move has covered an area of sparse orders , which now present as “gaps” in the market. These gaps usually fill at some stage, and usually sooner rather than later. To cover the reasons we would have entered this trade: Time of day : price had been quiet leading up to the start of the session where we would normally expect liquidity and therefore volatility to pick up Price was trading in a tight range Price moved strongly in a pop and stop fashion. At this point it could go either way, so we watch for further signals Price then forms a fairly convincing rejection bar from a significant level the round number. A further rejection bar follows. One way to trade the move from here would have been to place your limit order 1 to 2 pips ahead of the rejection bars. Your stop loss could have gone just below the tail of the rejection bars, if you wanted to trade it aggressively, or for a more conservative approach you could have placed it just below the highs of the range. Just as a note of interest I have circled a second area to the right where another possible trade entry set up. Once more a bullish rejection bar formed from a significant level the confluence of a monthly pivot (dashed line) with the top of the Pop ‘n’ Stop move to the left. The second chart at the left the shows two possible trades. The first is a bullish rejection from a round number, the polarity indicator (the yellow stream) and an old range which is barely visible at the left of the screen. Price had earlier popped above this range and begun to form another range based just above it, much like one brick on top of another. The second circle shows a very bullish candle with the first indications that price is beginning to stall: a substantial wick at the top. The second circled candle, a bearish one, completes a bearish Harami Candlestick pattern. If you had entered long at the first signal, this would be the sign to take profit, exit the trade or at least move your stop up. The final confirmation of an impending move down is the bearish rejection bar whose extremely long wick rejects from the highs. The Pop ‘n’ Stop is an interesting strategy for those tempted to trade breakouts. Some of the things to be aware of in trading it are: It is a comparatively risky strategy as you are counting on the gap left by the sharp move not being filled. The counter to this risk of course, is the use of rejection candlestick bars to confirm the move. The pop and stop is best traded in the direction of sentiment after news has caused a breakout from a tight trading range It should always be traded in a highly liquid session to ensure there is enough support for the move to continue Beware of upcoming news announcements which can quickly reverse the sentiment and fill the gap Breakouts that enable this strategy often occur at the open of forex market sessions: New York and London are prime examples. In fact, I created this strategy based on research I had been doing on the London open breakout strategy I had seen discussed elsewhere. I have also seen talk about New York open breakout strategies, but the same rules can easily be applied. Suffice to say that opens are generally the best timeframe for breakout trading. Variations on the strategy often occur at the end of such sessions, but that is a topic for another post. This is a short term, scalping breakout strategy. Always set tight stops, and take profits quickly: 1.5:1 or 2:1 is generally the limit of your take profit that can be safely set. Price rarely “flies to the moon” after it pops. Don’t be greedy! As indicated by the second white circle in both charts above, the strategy can be traded in conjunction with a countermove strategy if price reverses savagely and fills the gap. As always, watch your risk and trade attentively. Enjoy! Comments. what time chart are you using here? Yes, I should have made note of that. These are five-minute charts.