The Daily Break Out Strategy | Forex Factory

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The Daily Break Out Strategy

  • #1
  • First Post: Jun 1, 2017 7:02pm Jun 1, 2017 7:02pm
There are many daily breakout strategies available, but this one as i observed, will give you break even trades while in consolidation and big profits once the trend is caught, I have been trading this since quite some and time and found it profitable.

Open 1HR Chart with session break. Wait for 1HR candle to break the previous day high or low, once the break candle is identified, mark the high and low of break candle, then wait for 1HR candle to close above high or below the low if break candle.

LONG SETUP:
When the 1HR candle closes above the high of break candle.
Set the SL to LOW+5 pips of break candle.
TP: Choose your own method OR use daily ATR as trailing stops.

SHORT SETUP:

When the 1HR Candle closes below the low of break candle.
Set the SL to high+5 pips of break candle
TP: Choose your own method OR use daily ATR as trailing stops.


IF the SL is hit in any case, then mark the high and low of candle that hit your SL (Call it a SL candle). Wait for 1HR candle to close above or below the high or low of SL Candle and enter LONG or SHORT respectively.

Take a look at the attached file for screen shots.
Attached File(s)
File Type: docx trading strategy.docx   840 KB | 2,760 downloads
  • #2
  • Jun 1, 2017 7:16pm Jun 1, 2017 7:16pm
The UJ trade i took yesterday.
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  • #3
  • Jun 1, 2017 8:10pm Jun 1, 2017 8:10pm
OK, just took this trade AU.

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  • #4
  • Jun 3, 2017 6:36am Jun 3, 2017 6:36am
Quoting abhirag
OK, just took this trade AU. {image}
Could you explain what was the reason for this long trade in post #3 ?
Where did the session start ? What were the high and the low ? When did you start looking for a break candle ?
What happened then ? Which one was the break candle ?
Was there a losing trade before you took this long trade ? ( probably yes).

A general question I have about the strategy :

What is: 1 HR chart with session break ?
I know what a 1HR chart is, but what do you mean with "session break " ?
Does the session start when your MT4 charting software creates a new day ?
Or does the session start at 08 hour GMT , when the session in the United Kingdom starts ?


Here is a hint for those who looked at the doc file from the previous post #1. If you want to see the pictures clearer,
copy them into program Paint. Then you can clearly see them and read the remarks in the picture.
  • #5
  • Jun 3, 2017 7:46am Jun 3, 2017 7:46am
So basically, if the current day breaks the high low of the previous day, you wait until the first candle of the next day is completed then you straddle it?
HMSR
  • #6
  • Jun 4, 2017 6:13am Jun 4, 2017 6:13am
Quoting rexio
{quote} Could you explain what was the reason for this long trade in post #3 ? Where did the session start ? What were the high and the low ? When did you start looking for a break candle ? What happened then ? Which one was the break candle ? Was there a losing trade before you took this long trade ? ( probably yes). A general question I have about the strategy : What is: 1 HR chart with session break ? I know what a 1HR chart is, but what do you mean with "session break " ? Does the session start when your MT4 charting software creates a new day...
1 Hour chart, with session break (When Australia opens), for me its 5AM SGT(Singapore Standard Time). The yellow dotted lines shows the session break. So as you can see 5AM candle on Friday broke the previuos day's LOW (Considered Break Candle) and next candle at 6AM closed above the high of break candle, so i opened long trade with SL at LOW+5 pips of 6AM Candle. with trailing SL of daily ATR, I am still in this trade BTW, will see how it open on Monday.
  • #7
  • Jun 4, 2017 6:18am Jun 4, 2017 6:18am
Quoting Hmsr
So basically, if the current day breaks the high low of the previous day, you wait until the first candle of the next day is completed then you straddle it?
Well, it can be any 1HR candle in current day, that breaks the previous day's high or low of previuos day, I call it break candle and take the trade when any 1HR candle closes above or below the highs or lows of break candle.

If my SL hits in any case, then candle hitting SL becomes signal (I call it SL Candle), I take the trade again when 1HR candle closes above or below the highs or lows of SL candle. it kinda covers the losses i had. So as i said this strategy gives you break even while market is consolidating. and huge profit trades while in trends.
  • #8
  • Jun 4, 2017 6:04pm Jun 4, 2017 6:04pm
Quoting abhirag
There are many daily breakout strategies available, but this one as i observed, will give you break even trades while in consolidation and big profits once the trend is caught, I have been trading this since quite some and time and found it profitable. Open 1HR Chart with session break. Wait for 1HR candle to break the previous day high or low, once the break candle is identified, mark the high and low of break candle, then wait for 1HR candle to close above high or below the low if break candle. LONG SETUP: When the 1HR candle closes above the...


I will review and see how i can be of help...
R:R "Percentage Focus"
  • #9
  • Jun 4, 2017 9:02pm Jun 4, 2017 9:02pm
just took this LONG trade on UJ.

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  • #10
  • Jun 4, 2017 10:00pm Jun 4, 2017 10:00pm
AU LONG TRADE TAKEN

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  • #11
  • Jun 5, 2017 4:11am Jun 5, 2017 4:11am
Gold LONG TAKEN.


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  • #12
  • Jun 5, 2017 5:46am Jun 5, 2017 5:46am
Quoting abhirag
Gold LONG TAKEN. {image}
Where do you place your stop for the Gold trade ?
According to your system, it should be at the low of the break candle minus 5 pips. (Your first post mentions the Low + 5 pips, but that is probably an error).
Low of Break candle : 1279.92
minus 5 pips makes : 1279.42

Right now, this Stop Loss price has been met. This makes the latest candle the SL candle.
How do we continue from here ?

Is all this correct ?
  • #13
  • Jun 5, 2017 7:07am Jun 5, 2017 7:07am
Quoting rexio
{quote} Where do you place your stop for the Gold trade ? According to your system, it should be at the low of the break candle minus 5 pips. (Your first post mentions the Low + 5 pips, but that is probably an error). Low of Break candle : 1279.92 minus 5 pips makes : 1279.42 Right now, this Stop Loss price has been met. This makes the latest candle the SL candle. How do we continue from here ? Is all this correct ?

Yes, SL hit, waiting for next setup.
  • #14
  • Jun 6, 2017 2:07am Jun 6, 2017 2:07am
Today's Trades, so far

NU LONG
GOLD LONG
UJ SHORT

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  • #15
  • Jun 6, 2017 8:36am Jun 6, 2017 8:36am
Hi ABHIRAG,

Just to make it clear for me, when you say the that we wait for the 1HR candle to break the previous day's high or low, do we need this candle to break or do we need it to close above or below previous days high or low.

Regards Wolfie
  • #16
  • Jun 6, 2017 10:01am Jun 6, 2017 10:01am
Sorry, I just saw the answer in attached document in post number 1.

Wolfie
  • #17
  • Jun 6, 2017 6:11pm Jun 6, 2017 6:11pm
Quoting bigbadwolf74
Sorry, I just saw the answer in attached document in post number 1. Wolfie


Booked all yesterday's trades in some good profits.
  • #18
  • Jun 8, 2017 10:10pm Jun 8, 2017 10:10pm
This GU trade was taken yesterday.

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  • #19
  • Jun 8, 2017 10:13pm Jun 8, 2017 10:13pm
Another EU Short trade taken today.

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  • #20
  • Jun 8, 2017 10:15pm Jun 8, 2017 10:15pm
Quoting abhirag
Another EU Short trade taken today. {image}
Correction EU SL at 1.12075
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