You might believe this in itself is an amazing breakout trading strategy. The biggest downfall with breakout trading program autopilot forex is that there are too many false breakouts. Our team best forex trading robot software at Trading Strategy Guides has developed the best breakout trading strategy.
The strategy differentiates a false breakout and a genuine breakout. We have tested many technical indicators to develop the best breakout trading strategy.
No matter how many backtesting we have done, one technical indicator always comes first. Volume Weighted Moving Average ( VWMA ): The VWMA is a simple technical indicator used for volume analysis. The VWMA is one of the most underused technical indicators only professional traders use. VWMA looks like a moving average, but instead, it is based on volume. Now, before we best forex trading robot software go any further, we always recommend taking a piece of paper and a pen. Then note down the rules of the best Breakout trading strategy. (Rules xm expert advisor for a Buy Trade) Step #1: Identify a clear price range or a “V” shape swing high and mark that price level on the chart.
Best forex trading robot software Would.The first step of the best breakout trading strategy requires identifying the price level. This is the most important part when attempting to breakout trading. This is why we only want to recognize significant and clear levels. Do you want to boost your knowledge in identifying these levels?
We recommend spending best forex trading 5 minutes robot software to read, Support and Resistance: What Is Going On at These Critical Areas. This article will teach you methods to help identify the right support and resistance level. The resistance level we have identified in the figure above is significant. If you look closely, you’ll notice each rejection off of the resistance level left behind a minor “V” shape swing high. These findings bring best forex trading robot software us to the next step of our best forex trading robot software best breakout trading strategy. Step #2: Wait for a break and a close above the resistance level. Once the resistance level has best forex trading robot software been identified from there on, it’s just a game of patience and waiting. We need best forex trading a breakout robot software and breakout candle to close best forex trading robot software above our resistance level. We still need confirmation from the VWMA indicator.
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This will give us the green light to pull the trigger on this breakout trading. Step #3: Buy at the breakout candle closing price only if the VWMA is stretching up. The final step of the best breakout trading software robot strategy best trading forex is the needed confirmation from the VWMA. And the moving average needs to have best forex trading robot software a deeper inclination to the upside. Prior to the breakout, the VWMA only gradually software moved trading forex best robot higher after the breakout happened.
We saw the VWMA aggressively moving higher, which showed a strong presence of volume behind the breakout. After we bought, we still needed to define where to place our protective stop loss. This brings us to the next step of the best breakout trading strategy. Step #4: Place your SL below the breakout best forex trading robot candle software and take profit when you see a break below martingale strategy forex ea the VWMA. It was obvious to place our protective stop loss just below the breakout candle. This is because once we break below the candle that initiates the breakout, it proves to us that this is a false breakout. No real buying is taking place, so we better back out of the trade. Our take profit technique is intuitive because a break below the VWMA suggests there are no more buyers to sustain the current rally. We want to book the profits at the early sign the market is ready to roll over.