False London Breakout Strategy

[kodziro]

Hi.

Strategy : False London Breakout
Pair : E\U, G\U, U\J

Timeframe: 15m

Indicators : MACD, Stoch ( to check divergence ), BB, SMA(10),ADX

Rule : First of all draw line between high and low candles ( between 0.00 BST � 8.00 BST ) right after London open. This lines is our major resistant and support line. We want to spot :

- two candle pattern � piercing pattern, dark cloud cover or engulfing - ( depends on market situation ) :

1. Below/Above the res/sup line*
2. On the res/sup line*

* for better probability with divergence occurred, and keep in mind following trend direction

-hammer or shooting star intersect with sup/res line with divergence spotted.

Important :Use ADX if you trade against trend to determine strength trend.
MACD must cross zero line in our trade day.
Only trade with momentum ( price action ).

Optional : Use SMA(10) or(and) middle BB if you miss(late) trade opportunity.

1. LONG TERM
Wait for the change of MACD(daily) color. Expect to continuation movement with direction of according MACD color. Enter with False Breakout rule ( but be more flexible- our stop loss is larger- enter when price break res\sup and back above\below it ) . Hold trade for 2-5 days or to BE ( after 1 day).
SL: No more than 40-50 pips.

2. SHORT TERM
Use this rule every day.
SL : e\u : 15-20 g\u: 15-20 u\j : 10-15 ( or low/high of the second pattern candle or base on ATR(20))
TP 1:support/resistance line or 3*SL
TP2: measured boxed range between sup and res
Optional : After 30 -45 pips move stops to break even.

Note : You can change SL and TP whatever your trading style is.

Strategy was profitable for past two months. I want to official test it here for about 3 months. During this time I hope we share some ideas and thoughts about this system.
In the end of each day or at least week I will post result.

Cheers.

[kodziro]

Hi.

Today we had two trade opportunity :

E\U +54 pips

(TP2 not hit but if you move your stop to BE after hit TP1 or after 30 pips you are still on trade so wait for tomorrow or take profit at end of the day)

U\J – skip this trade ( see picture ) although it was a win trade

Cheers.

[kodziro]

Hi.

No trade today. ( clear move to trending direction at our res/sup box )

E\U- TP2 hit from yesterday +152 pips.

Cheers.

[kodziro]

Hi.

Today we had two Long Term trade opportunity G\U, E\G but we skipped them, why ? check attached picture.

Cheers.

[kodziro]

Hi.

U\J: +101 pips ( TP1 hit for +45 pips, TP2 hit for +101 pips ).

Cheers.

[kodziro]

Hi.

E\U: +57 pips ( TP1 hit for 57 pips TP2 not hit )

Cheers.

[boom1]

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