Special Breakout For Trading

As you probably know, round numbers are strong support and resistance areas. These points are very important in a chart because they may help us to identify a strong breakout or breakdown.

You can use this strategy in any timeframe and in any currency pair you prefer.

Rules Special Breakout For Trading :

In this strategy we will enter in breakouts or breakdowns, using round numbers. We will place a buy order on the breakout, for example, at 1.8801 or 1.9001. We will also set a 50 pips stop loss. In this strategy, the stop loss isn’t rigid; we will use a trailing stop loss. For example, if your entry order is at 1.8801, your initial stop loss order will be at 1.8750. When prices reach 1.8850, your stop loss will change to 1.8800, and so on. We will place a short sell order on the breakdown, for example, at 1.7999 or 1.7599. In this case, we will also set a 50 pips stop loss.

We will also use a trailing stop loss, like in the long side. If, for example, prices reach 1.7950, your stop loss will change to 1.8000, and so on.

Entry: Buy GBP/USD at 1.7401

Stop Loss: 1.7350

Exit: 1.7550

Profit: 149 pips

In this GBP/USD 1 hour chart, you can see that prices are approaching 1.7400. This price is a round number. So, we will place a buy order at 1.7401, in the breakout of this round number. We will also set a stop loss order at 1.7350. After entering the trade, the price continues to go up. So, when it reaches 1.7450, you will move your stop loss to the breakeven point, at 1.7400. The price continues to move up and when it touches 1.7500, you will move your stop loss once again, this time to 1.7450. The price still continues to go up, and reaches 50 pips higher. It is time to change your stop to 1.7500. The currency pair reaches now 1.7600 and your stop loss should go higher to 1.7550. At this point, the currency pair stopped its uptrend and you got out at 1.7550 – where your trailing stop loss was –, with 149 pips profit.

Entry: Buy GBP/USD at 1.8001

Stop Loss: 1.7950

Exit: 1.8350

Profit: 349 pips

For this GBP/USD 1 hour chart, we will place a buy order at 1.8001. According to this strategy, we should also insert a stop loss order 50 pips below our entry point, at 1.7950. After entering the trade, as the price is moving up, we need to adjust our stop loss accordingly. When the price touched 1.8400, we moved our stop loss to 1.8350, which was when we exited the position. In just 2 days, we made 349 pips profit!

Entry: Buy GBP/USD at 1.7601

Stop Loss: 1.7550

Exit: 1.7850

Profit: 249 pips

You should insert a buy order for GBP/USD at 1.7601, as well as the 50 pips stop loss (at 1.7550). After entering the trade, prices retraced a bit. After this retracement, prices started to go up again. We need to keep monitoring the trade so that we can move our stop loss when prices reach 50 pips higher. When prices reached 1.7900, our stop loss was immediately changed to 1.7850. This was where we exited the trade, making 249 pips profit.

Entry: Buy GBP/USD at 1.8701

Stop Loss: 1.8650

Exit: 1.8800

Profit: 99 pips

In this case, we should place a buy order at 1.8701. We should also enter our initial stop loss order at 1.8650. As soon as prices start moving up, the stop loss is adjusted. When prices reach 1.8850, our stop loss is moved to 1.8800. This was the price at which we exited the trade.

Entry: Short GBP/USD at 1.7699

Stop Loss: 1.7750

Exit: 1.7500

Profit: 199 pips

In this GBP/USD 1 hour chart, we will enter a short sell order at 1.7699. We will also place a stop loss order 50 pips above our entry point, at 1.7750. After entering the trade, when prices reach 1.7650, the stop loss will change to 1.7700, the breakeven point; when prices reach 1.7600, the stop loss will move to 1.7650; and so on. When prices reach 1.7450, our stop loss should be changed to 1.7500, which was the price at which we exited the trade. This trade was closed with 199 pips profit.

Entry: Short GBP/USD at 1.7499

Stop Loss: 1.7550

Exit: 1.7400

Profit: 99 pips

In this case, we should place a short sell order at 1.7499, as well as a stop loss at 1.7550.

When prices reach 1.7350, we should change our stop loss to 1.7400. We closed the trade at 1.7400, with 99 pips profit.

Entry: Short GBP/USD at 1.8999

Stop Loss: 1.9050

Exit: 1.8850

Profit: 149 pips

In this case, we should enter a short sell order at 1.8999 and an initial stop loss at 1.9050. By following the trade closely, we keep adjusting the stop loss in order to minimize losses and maximize profits. This way, when prices reach 1.8800, our stop loss will be at 1.8850. This is the price where we got stopped out with 149 pips profit.