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    Session Breakout Strategy

    Uploaded by

    vamsi kumar
    This document describes a session breakouts trading strategy. The strategy involves identifying the high and low of the 1-hour candle range for a currency pair during its session open. Two horizontal lines are drawn at the high and low. Trades are entered on the 5-minute chart when the first candle forms completely outside these lines. Take profit is set as the distance between the 1-hour high and low. Stop loss is the breached horizontal line. Positions can be re-entered if stopped out, following another candle outside the lines. Risk management includes exiting if momentum is lost or locking in profits once reached.

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    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd

    Session Breakout Strategy

    Uploaded by

    vamsi kumar
    317 views2 pages
    This document describes a session breakouts trading strategy. The strategy involves identifying the high and low of the 1-hour candle range for a currency pair during its session open. Two horizontal lines are drawn at the high and low. Trades are entered on the 5-minute chart when the first candle forms completely outside these lines. Take profit is set as the distance between the 1-hour high and low. Stop loss is the breached horizontal line. Positions can be re-entered if stopped out, following another candle outside the lines. Risk management includes exiting if momentum is lost or locking in profits once reached.

    Original Title

    SESSION BREAKOUT STRATEGY

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    This document describes a session breakouts trading strategy. The strategy involves identifying the high and low of the 1-hour candle range for a currency pair during its session open. Two horizontal lines are drawn at the high and low. Trades are entered on the 5-minute chart when the first candle forms completely outside these lines. Take profit is set as the distance between the 1-hour high and low. Stop loss is the breached horizontal line. Positions can be re-entered if stopped out, following another candle outside the lines. Risk management includes exiting if momentum is lost or locking in profits once reached.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    317 views2 pages

    Session Breakout Strategy

    Uploaded by

    vamsi kumar
    This document describes a session breakouts trading strategy. The strategy involves identifying the high and low of the 1-hour candle range for a currency pair during its session open. Two horizontal lines are drawn at the high and low. Trades are entered on the 5-minute chart when the first candle forms completely outside these lines. Take profit is set as the distance between the 1-hour high and low. Stop loss is the breached horizontal line. Positions can be re-entered if stopped out, following another candle outside the lines. Risk management includes exiting if momentum is lost or locking in profits once reached.

    Copyright:

    © All Rights Reserved
    Download as TXT, PDF, TXT or read online from Scribd
    Download as txt, pdf, or txt
    of 2

    This Strategy can be used for all sessions.

    Before any session begins in the forex market there is always a consolidation
    pressure known as Ranging

    Example..ie before GBP starts it's session at 8:00 GMT there is always a ranging on
    all the GBP market

    With our example we are going to use GBPUSD pairs

    Go onto your chart and Mark the highest and lowest of the 1 hour candle of GBPUSD

    The candle is the 7 to 8 GMT candle of 1 hour chart

    Then use two the horizontal lines to mark the top and the botton. Ie.. the highest
    of candle and the lowest of the candle
    Always use the wicks ....never use the body

    After that switch to the 5 minutes chart


    Look for the first candle that is formed outside the two lines on the 5 minutes
    chart
    The close of that candle is your entry point

    For entries on the 5 minutes chart always use the body ....never use the wicks...
    We are only looking for the first candle that completely formed outside the lines
    on the m5
    Even if it's wick or anything about the candle touches the line it is invalid
    You tp is the distance from the top of the 1 hour to the down of the 1 hour candle
    Thus..the distance of the highest to the lowest of the 1 hour candle ....

    Add that distance to a buy signal

    Subtract that distance to a sell signal

    STOP LOSE ...if the signal was a buy entry then the SL is the down horizontal
    line ....
    If the entry was sell entry then SL is the top horizontal line

    After your ENTRIES and the trade did not go to your direction and comes back and
    hit your SL
    You can still take a trade

    Do not think you have loss for the day


    Wait for another candle to form outside the horizontal lines and take your trade
    again
    Use the same TP and SL
    Always remember that session breakouts Strategy trader be in a trade for the whole
    day
    After sometime in the trade and you are not hitting TP and the day is getting older
    you must exit

    Because sometimes the market has Loss momentum

    Remember that as a session breakouts Strategy trader you always trade with momentum
    and directionBut not a direction and momentum

    After tp1 and you still want to risk for tp2,

    You just have to break even and use the same TP 1 size multiply by 2 for tp2
    This is just simple for all traders

    Session breakouts Strategy is good for all seasons breakouts in the world

    Just know the time of that particular session and trade it

    Some people trade three sessional breakouts every


    But I only stick to one, because I am very careful of my my money management skills

    Part 3.... session breakouts trading..... Risk management

    When you are in a trade and the market reverses back against you ..... You can
    either do the following....

    1... Allow the market to hit your SL and wait for another opportunity to enter the
    market

    2.... As soon as any candle reverses and close above the nearest horizontal line
    when in sell position, ...close the trade...

    Wait for another 5 minutes candle to form below the horizontal line without
    touching it and enter the trade again

    3 .... As soon as any candle reverses and close below the nearest horizontal line
    when in buyclose the trade...

    Wait for another 5 minutes candle to form above the horizontal line without
    touching it and enter the trade again

    Part 3.... session breakouts trading..... Risk management

    4..... When you are in profit and you have exceeded your expected PROFIT, just
    break even or lock in profit 1 or 2 pips above.....
    do not let the market reverse against and send you negative.

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