The Kicker Breakout forex trading strategy is a powerful and reliable breakout strategy. It’s composed of two simple to understand trading indicators and linear regression.
It is usually characterized by a precise price breakout following the period of two candlesticks. This strategy tells us that a group of investors have overpowered the other.
Chart Setup
MetaTrader4 Indicators: LinearRegSlope_v1.ex4 (default setting), 30 EMA.ex4, Linear_Regression_Line.ex4 (Input Variable modified; LRLPeriod=18)
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 (preferred low spread forex pairs)
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy if the following indicator or chart pattern gets displayed:
- If the bullish Kicker Breakout pattern gets formed as depicted by candlesticks 1 & 2 (usually more potent around a known support area), it is a signal that price is being pressured higher i.e. a signal to buy the specified currency pair.
- If the red line of the 30 EMA indicator crosses the blue line of the Linear_Regression_Line.ex4 custom indicator bottom up, price is said to be pushed higher, hence a trigger to buy the asset of choice.
- If the sky blue line of the LinearRegSlope_v1 custom indicator breaks above the 0.00 level, the sentiment in the market is said to be bullish, hence an alert to buy the designated currency pair.
Stop Loss for Buy Entry: Place stop loss 1 pip below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions take center stage:
- If the red line of the 30 EMA indicator crosses the blue line of the Linear_Regression_Line.ex4 custom indicator top downward, it is a trigger to exit or take profit without delay.
- If the sky blue line of the LinearRegSlope_v1 custom indicator breaks below the 0.00 level during a buy signal, it is a pointer to weaning bulls power, hence an exit or take profit is recommended.
Sell Entry Rules
Enter a sell order if the following holds sway:
- If the bearish Kicker Breakout pattern gets formed as shown by candlesticks 1 & 2 (the pattern is usually more powerful around a known resistance level), it is a signal that price is being pushed lower i.e. a signal to sell the designated forex pair.
- If the red line of the 30 EMA indicator crosses the blue line of the Linear_Regression_Line.ex4 custom indicator top downward, price is said to be pushed lower, hence a trigger to sell the asset of choice.
- If the sky blue line of the LinearRegSlope_v1 custom indicator breaks below the 0.00 level, the sentiment in the market is said to be bearish, this triggering a sell signal.
Stop Loss for Sell Entry: Place stop loss 1 pip above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following is true:
- If the red line of the 30 EMA indicator crosses the blue line of the Linear_Regression_Line.ex4 custom indicator bottom up during a sell order, it is a trigger to exit or take profit without delay.
- If the sky blue line of the LinearRegSlope_v1 custom indicator breaks above the 0.00 level during a sell signal, it is a pointer to halting bears power, hence an exit or take profit is recommended.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The LinearRegSlope_v1.ex4 custom indicator is a simple statistical method deployed in spotting the direction and strength of a leading market trend.
Technical traders use this method in technical analysis to define if the market is in an upward or downward trend and also gauge the intensity of surge or decline, in line with the previous trend of prices.
The Linear_Regression_Line.ex4 custom indicator is primarily used in determining the direction of a trend. The indicator essentially measures the line of best fit for a price series.
The 30 EMA is an exponential moving average that has its period set at 30 and reduces the lag by adding more weight to recent price.