Crazy “breakout” strategy | Makes daily Forex trading easy

Be honest, how many days and nights have you spent on the charts looking for the perfect setup or the perfect pattern, the pattern that would deliver consistent gains over time, have you found it yet, if not, I want to show you a simple and effective working strategy. I have developed over months of research and study and will show how to consistently profit by taking advantage of price and time dynamics.

Crazy “breakout” strategy | Makes daily Forex trading easy

This Forex strategy is based on two basic factors that leave no room for price estimation and time as the main advantage. Part of the range-finding strategy is the fact that you don’t have to spend hours in front of the charts trying to find all the different patterns like head and shoulders flags etc., nor do you have to jump from one time frame to another. Another is looking for the conviction that the pattern you have identified is worth trading and it doesn’t matter if you like trading using indicators or your price action trader, both approaches will work for this strategy.

Because you will analyze the markets based on goals and objectives. Non-subjective criteria that are clearly and precisely laid out, if this sounds good, let’s delve into the strategy first, let’s talk about the time element, Due to time zone and daylight saving time differences, the days and times for trading forex may vary based on your location. the opening and closing times of the markets are indicated keeping in mind Greenwich Mean Time (GMT) which means green in the meantime.

Explain the concept of breakout trading strategy in the Forex market

You need to pay attention to the fact that in different periods each country can have different time zones. These concepts may seem obvious to some, but it is very important regardless of which platform you are using to know the exact time that the charts show compared to GMT in London, so It must be very important that you pay close attention to the time displayed on the charts because it is not always the same as GMT. After all, for the strategy, it is necessary to know the opening and closing times of the different Forex sessions that make up the day. If we are misled by the wrong time on the platform, our analysis will be wrong.

As the trading day consists of several sessions, the European session, the American session, the Asian session also known as London New York and the sessions in Tokyo or Sydney for those who trade Forex and specifically intraday trading, it is necessary to know the times when currency exchanges take place in different markets. Especially times when multiple sessions are open at the same time, I have summarized the start and end times of the main trading sessions in London GMT in this chart For this strategy we are interested in the European session of Europe.

Breaking support and resistance levels and breaking channels in Forex

With the opening of the Forex trading session, for example, in Frankfurt, the main opportunities began at 8 GMT with the opening of the London session, while Tokyo is in the last hour of trading at this time. When a large number of traders participate in the market, it results in larger price movements than in the Asian session which also often proves to have a significant impact on the sentiment of the day.

Thus we can say that the opening moments of the London session are a good starting point for trading in a highly liquid market as well as finding the best opportunities. With Frankfurt in Europe opening an hour before and London an hour after, the movements that are generated often create the trend for the day allowing us to take advantage and pick up a portion. Therefore, the daily trend emerging from London does not always remain this way. At the opening of the New York session.

Risk management in Forex breakout trading strategy

The large trade volume achieved combined with the publication of important economic data can lead to major reversal moments that can also lead to a re-Watch the entire movement sparked by the London session, it goes without saying that even these reversals provide us with the opportunity to seize another trading opportunity Now, let’s talk about the importance of the opening price. Here’s what you need to know when determining the range and day trading in Forex. Opening The European session can cause significant price movements that often lead to important intraday trends, and the first factor that must be taken into account to benefit from these movements is the opening price. Opening of the European session.

The opening price is the point from which every day begins activities, and it is a very important price level at which major traders move from long vision to short vision and vice versa, and therefore we can consider the opening price as the crossing point that represents the sentiment of the day, and this is the basic point in this strategy. Most traders focus on the London open but smart traders know there is an important focus point.

What are the best Forex trading sessions for penetration?

Before the London open, which is the Frankfurt open, where the Frankfurt open occurs at 7 o’clock GMT the London opens at 8 o’clock GMT during this period there is an increase in volumes but it is still not enough to generate real trends. Now pay attention that the price distance that is formed in this hour from 7 GMT to 8 GMT defines the range that forms the opening channel. The opening channel contains the open price of the Frankfurt session and the open price of the London session. The opening channel must be the area that does not have to You should never enter the market in it.

Summary

The rest of the trading day Forex No Man’s Land This example shows the opening channel from 7 GMT Frankfurt opening until 8 GMT London opening These two lines represent the low price and the high price formed during this hour and thus determine the opening channel. The high price and low price of the opening channel are two very important levels. Because they are the first support and first resistance levels for the trading day. Remember that we do not trade within the channel if the price rises above it, as this creates an imbalance that leads to talk from buyers and vice versa.