New York Breakout Forex Trading Strategy

 

Have A Laugh 🙂

A husband and wife are in church. The preacher notices that the husband has fallen asleep and says to the wife, “Wake your husband up!” The wife answers, “You’re the one who made him fall asleep, you wake him up!”

………………….

On the night of their honeymoon, a newlywed couple has an unfortunate accident, resulting in the amputation of the groom’s left foot. Unable to control her grief, the bride calls her mother from the hospital. “Mother,” she sobs, “my husband has only one foot.” The mother, trying to console her daughter, says, “That’s alright dear, your father has only six inches.”

……………………

Hello Traders,

lets get serious now, shall we?

This is a forex trading strategy designed to trade breakouts on the New York-US Trading Session.

Its almost similar to the the 50 Pips a day trading strategy. But this time its for the US trading session. Let get to the trading rules, shall we?

In reality, this is a breakout support and resistance trading. Instead of buying at the support and selling at the resistance, you are wait for a breakout of support to sell and breakout of resistance to buy.

Disclaimer: if have not tested this trading system. Try it at your own risk.

TRADING RULES

1. Use a 15 minute Chart for a USD Major pair, example like GBPUSD or EURUSD.
2. Draw a vertical line at 7am EST on your Chart.
3. Draw a vertical line at 9am EST on your Chart.
4. Draw a Horizontal line at the high of candles/bars in between the vertical
5. line.
6. Draw a Horizontal line at the Low of candles/bars in between the vertical
7. line.
8. Place a buy stop pending order just 1 or 2 pips above the high point and similar place a sell stop pending order below the low point.
9. Place you stop loss on opposite ends, that is, your stop loss for the buy stop pending order will be placed on the price level where you placed the sell stop pending order and similarly but opposite for the sell stop pending order.
10. Wait for a breakout to happen and when it happens, you need to cancel the other pending order.
11. Place a 50 pips profit target or if you think it can go more than 50 pips, why not trail stop your trade at 15-20 pips?

Here’s a chart showing you how to do it:

TAKE NOTE!!!

1. There are only 9 candles/bars in the 15 minute chart, between 7am-9am.
2. If the price doesn’t break the high/low,  then its a ranging market. Cancel all your pending orders and wait for the next day to trade at the same time.
3. USD news releases are usually around or after the 7am to 9am phase.
4. The signals are only valid for the current day, Next day you again need to wait for the 7am-9am candles and repeat the process.
5. If you operate in GMT times, this will help:  7am EST = 12pm GMT and 9am EST = 2pm GMT

ADVANTAGES OF THE NEW YORK BREAKOUT FOREX TRADING STRATEGY

• Stops you from over trading because you now only have to take one trade a day which equates to 5 trades a week.
• if you have a day job, this strategy allows you to place a trade and walk away without having to sit and wait for trading setups to happen.
• The forex market trend that starts off in UK often tends to continue into the New York US trading session.
• If the Distance between the high and low is less than 50-60 pips, it could be very profitable.
• No other forex indicators required, its just price action trading here.

DISADVANTAGES OF THE NEW YOUR BREAKOUT FOREX TRADING STRATEGY

• If the Distance between the high and low is more than 50-60 pips, it may not be profitable. Why? Because a lot of move has already happened and market may not necessarily have the steam to continue moving up or down. If you happen to take a trade in such a case, maybe you should be aiming for a 20-30 pips profit target instead of a 50 pips profit target.

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