Forex Breakout Direction Indicator v7.180

So, this means that your real R:R is 1.5:1.
(say, you trade 0.2 lots and your SL is 20 pips; if you lose, you lose $40, and if you win, you win $60).

I found a free version of relative strength Indicator. But in fact, I don't think filters must be used at all with this system. For example, GBPJY had a perfect break today again, but the trade was not taken because the breakout strength was at 81%, and I set it to be 90% minimum.

Hi Norg,

Yes my R:R altogether is 1:1.5

Risk = 1 Reward =1.5

There are plenty of different types of RSI indicators, however I use a Current Strength Indicator which shows strong, stronger, weak and weaker

I'm going to make my Currency Strength Indicator available to purchase / trial on my website in the next few days

I've had a few people message me on how I use my Currency Strength Indicator. In my next post I will show a good example on how this indicator helps me trade

AFK CSI

The screen shot below shows the AFK Currency Strength Indicator (CSI)

The indicator updates on the close of the candle, so on this example the daily candle, which is 10pm GMT on a XM.com +2 server

The values may be slightly different per broker, but the main "bigger picture" will be the same

The white lines, which I place on the chart, show the daily close and the previous close. The indicator itself also shows the values of the present day (the far left values) and the previous days

Today is Thursday 20.09.2018

So the indicator is showing the below

USD
Wednesday close value -167.16
Tuesday close value -18.63
The value has increase in a lower value, which shows weakness
The USD green line has been looking flat recently, but notice how the wednesday close is lower then any previous green line shown. This shows me that USD weakness is showing

EUR
Wednesday close value -110.12
Tuesday close value -75.26
The value has increased in a lower value, which shows weakness
However, the EUR light blue line is still showing being flat. If you look at EURUSD daily chart, you can see that it's been in a range and shown indecision in the market. The pair actually shot upwards today, showing that not all movements can be predicted. This is not a holy grail! Nor do I believe there is one!

GBP
Wednesday close value -28.04
Tuesday close value +172.10
The value has gone from a positive to a negative which shows weakness
However, it would be wrong to sell the GBP, as the red line is clearly showing a trend in strength, so the Wednesday weakness would in fact be a pull back. I would not buy or sell GBP with this reading

CHF
Wednesday close value -565.00
Tuesday close value -201.87
The value has grown in a massive negative value, which shows extreme weakness
The dark orange CHF line, is also at the very top of the CSI and is now heading lower, which shows over bought conditions so good sell CHF set ups should be taken is the next coming days if this lines keeps heading lower

AUD
Wednesday close value +576.88
Tuesday close value +82.72
The value has grown positively, which shows strength
Light AUD orange line is at the bottom is the CSI and heading up, which shows that AUD has now found some strength. Since 11.09.18 it has been getting stronger with one pullback

CAD
Wednesday close value +319.85
Tuesday close value +81.68
The value has grown positively, which shows strength
The CAD purple line is near and bouncing around the zero line. Caution needs to be taken with CAD. What is valid is a USDCAD cross. USD green line crosses downwards from a CAD purple line. USDCAD sell is on, if the Forex Breakout Direction Indicator agrees with this movement
What is also happening is that CAD purple line is heading upwards above the zero line and JPY dark red line is moving away heading downwards away from the zero line. A CADJPY buy is also on, if the Forex Breakout Direction Indicator agrees with this movement

JPY
Wednesday close value -251.94
Tuesday close value -133.61
The values are growing in a negative way, which shows the weak currency is getting weaker
Dark red JPY line has been showing downwards movement for a few days now

NZD
Wednesday close value +217.74
Tuesday close value +91.19
The values are getting bigger, which show strength
The NZD dark blue line is following the same trend as the AUD line. I only trade NZDUSD as for me, there is not much movement in this pair to successfully trade breakouts. Also the spread on NZD crosses are generally bigger. NZDUSD has a acceptable spread for me.

Summary
USD Sell
EUR Flat
GBP Weak Buy
CHF Sell
AUD Buy
CAD Caution Buy, Crosses with USD and moving away from JPY
JPY Sell
NZD Buy

So today's charts, looking at the Forex Breakout Direction Indicator will be -
AUDUSD Buy
USDCAD Sell
NZDUSD Buy
AUDCHF Buy
CADJPY Buy

So what happened?

AUDUSD hit TP1, currently +21 pips

USDCAD hit TP1 currently +4 pips

NZDUSD hit TP1 currently +28 pips

AUDCHF luckily for me did not enter, it was 1 pip away. If this triggered, this would of been a losing trade

CADJPY hit TP1 currently +14 pips

AFK CSI is now available on the website https://www.forexbreakout.co.uk/buy

Regards
Craig
Away From Keyboard Forex Limited
www.forexbreakout.co.uk
[email protected]

Hi mate,

Been thinking about your comments today. I stated previously that I do not move stoploss to breakeven, I just leave them to run, however, thinking about it, if the trade i'm in starts showing signs of weakness, then it makes sense to either close or move to breakeven.

Did a bit of back testing on this today and it seems to protect the risk/reward ratio a lot!

Craig

Ok, if it could help...
I have another question for you. I put the EA on GBPJPY this morning, and we had a perfect break down, but the EA didn't open a sell. Do you think this can be because of "breakout direction = BUY" indication? If so, could it be disabled, so the EA takes the breakout in any direction, whichever comes first?

Hi Norg,

The EA only trades from the information of the indicator.

The EA does not have a "OCO" mode "One Cancel Other" as in takes the first breakout.

I've programmed, used and have OCO EA's. Around 5 years ago and traded with them for 18 months, the results do not give a positive outcome, so I no longer use them.

The Indicator does however have a AUTO and MANUAL mode.

So, if left on AUTO the indicator's logic will tell you the "expected" breakout direction.

If you set the indicator onto MANUAL, you can choose which way you wish to trade, and then the indicator will give you suggested entry, stoploss and take profit values.

Some traders that study round numbers, news and levels use the manual mode, for when they expect the pair to go in the opposite direction, like GBPJPY did today

Yes, I see what you mean. So it's currently impossible to disable the direction suggested by the indicator, and to use an auto "take the first breakout" option... I understand that I could set it manually, but I was looking for an automatic way...

Correct. Take the first breakout option is not available on this EA

Today's results, using the indicator has stand alone, = -40.8 pips, which current active trades +57 pips in profit

On my own personal live account, using AFK CSI, only taken EURCHF Buy trade, which is currently -16 pips