logo

20 Pips Daily Candlestick Breakout Forex Strategy-A Solid Trading System To Have

20 Pips Daily Candlestick Breakout Forex Strategy-A Solid Trading System To Have
The 20 pips daily candlestick breakout forex trading strategy is a price action trading system where you only need to trade once a day using the daily candlestick and your profit target is set at 20 pips.

There’s also a forex trading system called the 30 pips a day forex trading strategy which you can check out after you’ve read this.

Also, check out my Free Price Action Trading Course if you are interested in trading price action.

The idea behind this trading system is this: daily candlesticks can travel 100’s of pips daily so why not just catch just a tiny portion of this daily movement?

And to do this, just trade the breakout of the high or the low of the daily candlestick.

Currency Pairs: any

Timeframes: Daily

Forex Indicators: you do not need any

20 PIPS DAILY CANDLESTICK BREAKOUT FOREX STRATEGY TRADING RULES
It is advised that you do not trade if the daily candlestick breakout happens during the Asian forex trading session. Why? Because it usually has low trading volume and lacks the momentum required to accelerate price movement.

But if the daily candlestick breakout happens during the London forex session, there’s a great chance that whatever the breakout direction price makes will be the direction it will maintain for that day.

Buying Rules:

Place buy stop pending order 2-3 pips above the high of the daily candlestick.
Place your stop loss 20 pips
Place your take profit target 20 pips.
Repeat the process next day
Selling Rules:

place a pending sell stop order 2-3 pips below the low of the daily candlestick
place your stop loss 20 pips
place your take profit target 20 pips
repeat the process the next day.
HERE’S THE TRADE EXAMPLE:

20 Pips Daily Candlestick Breakout Forex Strategy-A Solid Trading System To Have

ADVANTAGES OF THIS FOREX STRATEGY
this forex strategy would suit a housewife forex trader who stays at home and looks after children as it takes less time and less effort because its a set and forget trading system
or it can suit a trader that has a day job and has no time to watch the charts so before you go to work, just place your pending orders and go to work. Check the next day what happened…
many traders trade the breakouts of the highs and lows of daily candlesticks so if a high/low breakout happens, there’s likely chance of your profit target being hit easily because its just only 20 pips.
DISADVANTAGES OF THIS DAILY BREAKOUT FOREX TRADING STRATEGY
in a low volume/volatility period (mostly happens in Asian trading session but sometimes can also happen in London and new your trading session), you may get a breakout that will trigger your pending order but then price heads the opposite way once that order is triggered and you will get stopped out.
1:1 risk reward. I really don’t like trading systems that give one to one risk to reward. This means that for every 100 dollars you risk trading, you win 100 dollars (if you win). But having said that, you may like it, that’s why I’ve shared this forex strategy with you here.

Source

CONTACT US

Mail : [email protected] Skype : qmanager.live

Phone : 0091 9600329983 and 0091 9487929983

Whatsup: +91-9600329983 and viber: +91-9600329983

Instagram: https://www.instagram.com/forextamil/

Facebook : www.facebook.com/forextamil4u

Twitter: https://twitter.com/forextamil

Telegram.: https://t.me/joinchat/AAAAAE1NL_LTgtLrGlmbIQ

Pinterest: https://in.pinterest.com/forextamil/

Youtube : www.youtube.com/user/senthamizharasuvta

Tradingview: https://www.tradingview.com/u/forextamil/

website: www.tradingwithtamil.com and www.forextamil.com

Broker: www.ttsmarkets.com

 

08 Jan 2019 11:47 am Posted by tamilforex

 
WhatsApp chat