WEEKLY BREAKOUT STRATEGY
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Thread: WEEKLY BREAKOUT STRATEGY

  1. #1
    Trader ola4real's Avatar
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    WEEKLY BREAKOUT STRATEGY

    Good evening everyone, i am so glad to write my first thread today, it is long overdue since i have being in the forum for about three months now. I was taught this lovely and simple trading strategy called weekly breakout by a friend back in the school days, and i hope it will be of good value to all of you to make fortune in the forex field just as it has helped me in particular. It is a simple strategy as long as you can follow it the way i am about to explain to you it. All the best to you all...

    SCOPE OF WEEKLY BREAKOUT STRATEGY: As we all know that the market respect the strategy of breakout so much, it can be a daily breakout, weekly breakout or monthly breakout, the market will respect all of them when it gets to their level. I have used daily, weekly and monthly breakout, and i realize that the one that is more powerful according to my demo experience is the weekly breakout strategy, that is why i have being using it ever since then to make income from the forex field.

    What you have to do is to go to your line panel on the mt4 chart, pick two vertical lines and two horizontal lines, and place the vertical lines where the market opened and close for the previous week on 4 hours time frame. Then, place the two horizontal lines at the highest and lowest point of the previous week.

    For Vertical: Vertical Line.PNG


    For Horizontal: Horizontal Line.PNG


    Note: I select the 4 hours time frame so that the lines will be easily readable, you may use lower time frame like 1 hour time frame for it or even daily chart, the choice is yours.

    STRATEGY: Make a buy order when the market breaks the yellow vertical line up when it is a buying market. In the same way, make a sell order when the market breaks the yellow vertical line down when it is a selling market. As you can see, this is a very simple strategy, but it is a powerful strategy to make us earn big income in the forex field.

    STOP LOSS AND TAKE PROFITS: I know that the strategy that is not using stop loss and take profit is a bad strategy, but i don't like choosing stop loss and take profits points for traders. According to my usual trading, i use 30 pips as stop loss, and 120 pips as my weekly target on major pairs. And 35 pips stop loss and 150 pips target for crossed pair trading.

    EXAMPLES: I have two examples for you on EURJPY and USDJPY. You can see when the market breaks the yellow line down on EURJPY at 131.884, the market later became so strong to the sell order, it moved many pips after then. And look at chart of USDJPY too, when the market breaks the previous week high at 107.847, the market climbed up strongly.

    EURJPY.jpg


    USDJPY.jpg

    CONCLUSION: This is a good strategy i have being using for long, it is powerful and skilled. With this simple strategy, any trader can trade once or twice in a week and make big value of income.

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  2. #2
    Trader ola4real's Avatar
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    This is a good strategy for traders that values the use of breakout strategy, this is a long term breakout since it is working on weekly charts. I have being using this like i said and it has being making good income for me since i know how to trade it rightly. I may be using price action most times too, but without a strategy like this, my work on trading the forex will not be a strong one.

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  3. #3
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    This is a good breakout strategy, I am using a trading strategy that is similar to this one, but I don't apply any drawings to my chart, I just check the breakout directly on the weekly chart, and I am good to go thereafter. To be frank, this trading strategy can mass in high profits into the pocket of its traders. However, we should be praying against false breakout when trading this kind of strategies, it is the only one that can cause us to regret trading a strategy like this.

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  4. #4
    Trader tfs2012's Avatar
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    [lang=ar]You really do not need all this because you are simply dealing with a weekly candle. therefore, it is better to use the weekly time frame and monitor the behavior of the price.
    Also since it is a simple idea it can be programmed as an indicator, it will help you a lot.[/lang]

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  5. #5
    Trader ola4real's Avatar
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    Quote Originally Posted by tfs2012 View Post
    [lang=ar]You really do not need all this because you are simply dealing with a weekly candle. therefore, it is better to use the weekly time frame and monitor the behavior of the price.
    Also since it is a simple idea it can be programmed as an indicator, it will help you a lot.[/lang]
    You are wrong in that view, i used weekly time frame for this strategy sometimes ago and i realize that market might have broke it the weekly candlesticks, but because the 1 week is a large chart you will not notice that in time. That is why i prefer to draw that line the way i did it, and when traders can use it on lower time frame for weekly lines, that trader will be seeing the slightest breakout of the market against the previous week values on everyday they trade.

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  6. #6
    Trader Toyen's Avatar
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    Quote Originally Posted by ajagbeolegba View Post
    This is a good breakout strategy, I am using a trading strategy that is similar to this one, but I don't apply any drawings to my chart, I just check the breakout directly on the weekly chart, and I am good to go thereafter. To be frank, this trading strategy can mass in high profits into the pocket of its traders. However, we should be praying against false breakout when trading this kind of strategies, it is the only one that can cause us to regret trading a strategy like this.
    I read it too, it is a good breakout strategy, but i use the candlestick on weekly chart to see things directly, that may not make me to have the need for this kind of strategy. It is a good strategy with the way the traders have explained it and i like to trade every breakout strategy. I can be using it to watch the market while i continue with the trade of my regular use of trendline.

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  7. #7
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    Quote Originally Posted by tfs2012 View Post
    [lang=ar]You really do not need all this because you are simply dealing with a weekly candle. therefore, it is better to use the weekly time frame and monitor the behavior of the price.
    Also since it is a simple idea it can be programmed as an indicator, it will help you a lot.[/lang]
    I think that a trader might have his own view about what he wants to do, and i have read the explanation on this thread carefully, i know that it worths it. I know this kind of strategy before i read it here, i learned it through the 4 hour time frame and it is good. All the breakout strategies in the market are good, and you can not expect traders to be trading them in the same way.

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    Last edited by ajagbeolegba; 05-22-2018 at 07:54 PM.

  8. #8
    Trader layigold's Avatar
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    The concept of breakout in forex trading is often misconstrued by a lot of traders and to say that market respect the strategy of a breakout is a term that needs further clarifications. There have been so many cases of a false break , the experienced traders in the forum can readily bear me witness and there is sometimes a retest of the level that has been previously broken for market to gather momentum to really trend . There is need for patience when a level is broken to confirm how valid the break is and when you miss and opportunity in the process of waiting , I consider that better than losing money as a result of being hasty to take trade decision .

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  9. #9
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    Sir, this indeed is a very brilliant work by you on market breakout and like you have said, it can be used in any time frames even though your preferred time is the H4 which to me is excellent. I have not been using any breakout strategy before now, you have just opened my eyes to that aspect of the market even though i do use all the lines that you made mention here but for some other purpose. I have a case here brother about this market breakout, how do you confirm that of a truth , the market has actually broken out because many time there is what we call false breakout in which case the market price will break to a direction only for it to have a u- turn and face another direction.?

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  10. #10
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    Quote Originally Posted by ola4real View Post
    This is a good strategy for traders that values the use of breakout strategy, this is a long term breakout since it is working on weekly charts. I have being using this like i said and it has being making good income for me since i know how to trade it rightly. I may be using price action most times too, but without a strategy like this, my work on trading the forex will not be a strong one.
    I can see for myself that this is a good strategy that can give huge pips value to the trader that knows how to use it. And with the way i have being noticing this kind of trading strategy, traders can be working with the and be making consistent 150 pips every week in a single trade. The trader may not trade the major currencies if they want to make such an achievement, it is the crossed pairs that does that for me all the time.

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