5 Days breakout

To apply this strategy, you need to analyse the last 5 days of trading. We will draw in the chart two horizontal lines. One horizontal line at the higher price achieved by the currency pair in the last 5 days, and another one at the lower price reached by the currency pair in the last 5 days. When the price crosses above the higher line, we have a buy opportunity; when it crosses below the lower line, we have a short sell opportunity. You will need to adjust these lines every trading day. We will use a 20 pips protective stop loss on this strategy. For exit decisions we will use the MACD Histogram.
The Rules:
Buy 1 pip above the 5 days’ high or short sell 1 pip below the 5 days’ low. Set a stop loss of 20 pips. Exit the trade when your stop loss is reached, or when the MACD-Histogram gives you an exit signal. If you are in a long position and the MACD-Histogram isabove its centerline (the zero line) and decreasing, exit the trade. If you are in a short position, and the MACD-Histogram is below its centerline (the zero line) and increasing, cover your short.
Let’s see some real trades.
5 Days breakout
Entry: Buy GBP/USD at 1.7730
Stop Loss: 1.7710
Exit: 1.7779
Profit: 49 pips
In this GBP/USD 1 hour chart, the horizontal line represents our buying point (1 pip above the highest level the currency pair reached in the last 5 days). We will place a buy order at 1.7730 and set a 20 pips stop loss.
After entering the position, we need to look at the MACD- Histogram. This indicator will tell us when to exit the position. This will happen when it gives a downtick while is above its centerline (the zero line). According to the chart, we will exit the position at 1.7779, with 49 pips profit.
5 Days breakout
Entry: Buy GBP/USD at 1.7707
Stop Loss: 1.7687
Exit: 1.7795
Profit: 88 pips
In this GBP/USD 1 hour chart, the horizontal line represents our buying point (1 pip above the higher price of the currency pair in the last 5 days). This way, we will enter a buy order at 1.7707 and set a 20 pips stop loss. After entering the trade, we need to pay attention to the MACD Histogram. As we can see in the chart, the MACD- Histogram gives a downtick while is above its centerline, when the price hit 1.7795. It is time to exit the trade with 88 pips profit.
5 Days breakout
Entry: Short GBP/USD at 1.7434
Stop Loss: 1.7454
Exit: 1.7361
Profit: 73 pips
We will use a GBP/USD 1 hour chart in this example. The horizontal line represents our entry point (1 pip below the lower price of the last 5 days). We will enter a short sell order at 1.7434 as well as a protective stop loss. After entering the trade, we need to look at the MACD- Histogram. We will cover our short sell when the MACD- Histogram gives an uptick below its centerline. This happens at 1.7361. This was a great risk reward trade. Considering that you are trading a single currency pair, you risked $200, and gained $730. That’s the way a professional trades.
5 Days breakout
Entry: Short GBP/USD at 1.7328
Stop Loss: 1.7348
Exit: 1.7262
Profit: 66 pips
The lowest price of the last 5 days of GBP/USD was 1.7329. So, our short sell order will be entered at 1.7328. When the order is filled, we start to pay attention to the MACD-Histogram. When it gives an uptick below its centerline, it is time to exit. This happened at 1.7262, giving us 66 pips profit.
You can use any timeframe you want for this strategy. However, as we are using at least 5 days of data, the timeframe shouldn’t be too small. 30 or 60 minutes charts are suitable for this strategy. A 15 minutes chart can work as well, but is not as efficient as the 30 or 60 minutes are. 4 hour charts are another decent option for this strategy. Don’t try to use this strategy with a timeframe below 15
minutes because it won’t work as well.
 5 days breakout Metatrader 4 indicator
below link for download 5 days breakout MT4
https://drive.google.com/file/d/0Bwjv2Pbf48itbUxSNTRkcnRlWkE/view?usp=sharing

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