MagicBreakout Forex Strategy

A system that allows you spot price breakouts in the market will eventually lead to great wins and this is obviously the yearnings of every trader.

We have designed a strategy that takes advantage of basic indicators, with an intelligent approach, for just about anyone in today’s marketplace.

Chart Setup

MetaTrader4 Indicators: CycleIdentifier.ex4 (default setting), EMA24 High, EMA24 Close, EMA24 Low

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 Magic Breakout Forex Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern gets displayed:

  1. If price opens and closes above the magenta waves of the EMA24 High, EMA24 Close & EMA24 Low indicator (refer to Fig. 1.0), price is said to be pressured higher and a buy trigger is recommended on the next candle open (denoted by the red horizontal line).
  2. If the lime vertical bar of the CycleIdentifier.ex4 custom indicator is aligned below the 0.00 level as illustrated on Fig. 1.0, price is said to be on its way up i.e. a bullish signal.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If price closes below the middle wave of the EMA24 High, EMA24 Close & EMA24 Low indicator, it is a forewarning of an impending price reversal, hence an exit or take profit is advised.
  2. If the red vertical bar of the CycleIdentifier.ex4 custom indicator takes up position above the 0.00 level as seen on Fig. 1.0 during a bullish trend, it is a call to exit or take profit according.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If price opens and closes below the magenta waves of the EMA24 High, EMA24 Close & EMA24 Low indicator as depicted on Fig. 1.1 price is said to be pushed lower and a sell alert is advised on the next candle open (denoted by the red horizontal line).
  2. If the red vertical bar of the CycleIdentifier.ex4 custom indicator gets aligned above the 0.00 level as seen on Fig. 1.1, price is said to be on its way down i.e. a bearish signal.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following true:

  1. If price closes above the middle wave of the EMA24 High, EMA24 Close & EMA24 Low indicator during a bearish trend, it is a forewarning of an impending price reversal, hence an exit or take profit is advised.
  2. If the lime vertical bar of the CycleIdentifier.ex4 custom indicator takes up position below the 0.00 level during a bearish trend, it is a call to exit or take profit according.

Sell Trade Example

Fig. 1.1

Free Download

Download the Magic Breakout Forex Strategy

About The Trading Indicators

The CycleIdentifier.ex4 is a custom indicator that is used in gauging cycle tops and bottom as they happen. The indicator is a trademark of Roy Kelly and is copyrighted by Roy Kelly.

The EMA24 High, EMA24 Close and EMA24 Low are essentially exponential moving averages set at varying periods and applied to high, close and low or the respective periods.

Share Now!