Buy Sell Breakout Forex Trading Strategy

It is always interesting to be able to catch trends in their formative stages, as traders can transform this into massive opportunities for profits.

The Buy Sell Breakout forex trading strategy is designed to scan the market for buy/sell signals, and is able to do this quite frequently, meaning traders can capture profits on a daily basis.

Chart Setup

MetaTrader4 Indicators: livelli_sr_now.ex4 (default setting), MA-4H.ex4 (default setting)

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

Download

Download the Buy Sell Breakout Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If price closes above the deep sky blue dotted horizontal resistance level of the livelli_sr_now.ex4 custom indicator, it is signaling price breakout to the upside, as such a bullish signal is most appropriate.
  2. If the medium sea green line of the MA-4H custom indicator crosses its red line bottom up as shown on Fig. 1.0, price is said to be pressured to the upside, hence a call to buy the specified currency pair.

Stop Loss for Buy Entry: Place stop loss below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If while price is driving higher, a dip is experienced that takes price to close below the tomato dotted support horizontal level of the livelli_sr_now.ex4 custom indicator, traders are advised to exit or take profit forthwith.
  2. If price close below the medium sea green line of the MA-4H custom indicator during a buy alert, it indicates weaning bulls power, as such an exit or take profit will do.

Sell Entry Rules

Initiate a sell entry if the following holds true:

  1. If price closes above the tomato dotted horizontal support level of the livelli_sr_now.ex4 custom indicator, it is signaling price breakout to the downside, as such a bearish signal is most suitable.
  2. If the medium sea green line of the MA-4H custom indicator crosses its red line top downward as depicted on Fig. 1.1, price is said to be pushed lower, hence a call to sell the specified forex pair.

Stop Loss for Sell Entry: Place stop loss above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds sway:

  1. If while price is pushing lower, an upward spike is experienced that moves price to close above the tomato dotted support horizontal level of the livelli_sr_now.ex4 custom indicator, traders are advised to exit or take profit without delay.
  2. If price closes above the medium sea green line of the MA-4H custom indicator during a sell alert, it indicates weaning bears power, as such an exit or take profit will suffice.

Sell Trade Example

Fig. 1.1

Free Download

Download the Buy Sell Breakout Forex Trading Strategy

About The Trading Indicators

The MA-4H.ex4 custom indicator shows the moving average of the selected timeframe on the activity chart of the most recent timeframe.

The intersection of the lines of the moving averages gives us clues to possible price trends.

The livelli_sr_now.ex4 custom indicator for MetaTrader4 is an indicator that shows support and resistance levels.

The resistance level is drawn as a horizontal dotted blue colored line, while the support level is depicted as a horizontal dotted tomato colored line.

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