Forex trading strategy #11 (GBP/USD breakouts)
Submitted by User on December 24, 2007 - 04:42.
Credits to James Ayetemimowa - our valued contributor!
GBP/USD
when it is 1 hour to london open, draw lines on the highest high since midnite and lowest low since midnite, just trade the breakout and let ur stop loss be at the high of the candle that broke the low line for short trade and the low of the candle that broke the upper line for long trade
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Hi Roberto,
For entries, yes, that would be +-5 pips above/below high/low.
Usually breakout systems use no indicators for the simplicity of the execution.
It is either a breakout or not, there is no confirmation or filters needed.
Although, you may have a sneak peak at daily pivot points to see if they support your trading ideas.
Regards,
Edward
anyone using this system?
I have been trying this simple system in the past weeks, and also done some backtests, still positive overall but initial reaction is do not use this method in periods of consolidation due way too much whipsaw, it seems to work in clean uptrend or downtrend days.... when you are near significant support or res lines, step side and wait until trend resumes
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