M5-Two-Way-Confirmation-Strategy

See #216

Exit @ 91.92 (DS2)

Profit: +127 pips

Breakout Trading
Example

When currency prices break out o certain price levels a large sustained move in the direction of the breakout may occur, giving rise to a situation whereby more profits could potentially be captured in the least amount of time.

The main problem with trading breakouts is that many of these breakouts attempts fail.

Breakout Trading
Example

When a price attempts a breakout of a significant support or resistance level, it signals a change in the balance of supply and demand and such a change may be triggered by a chance in the market sentiment or a renewed resolution of bulls or bears of a currency pair or the unfolding of certain fundamental events.

Successful breakouts have to be accompanied with a strong surge of momentum in the direction of the price breakout.

Price Breakouts can be catgegorized into two main types:

Continuation breakouts and reversal breakouts.

Breakout


http://i.investopedia.com/inv/092009.../book_icon.jpg
What Does Breakout Mean?
A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility. Traders will buy the underlying asset when the price breaks above a level of resistance and sell when it breaks below support.

http://i.investopedia.com/inv/dictio.../breakout1.gif

This chart shows a stock that has historically encountered a lot of resistance near $37, but notice how it heads sharply higher following the breakout.

http://i.investopedia.com/inv/092009...y/inv_icon.jpg
Investopedia explains Breakout
In practice, a breakout is most commonly used to refer to a situation where the price breaks above a level of resistance and heads higher, rather than breaking below a level of support and heading lower. Once a resistance level is broken, it is regarded as the next level of support when the asset experiences a pullback Most traders use chart patterns and other technical tools such as trendlines to identify possible candidates that are likely to break through a support/resistance level.

A breakout is the bullish counterpart to a breakdown.


Related Terms

1. Breakdown
2. Breakout Trader
3. Conditional Order
4. Pattern
5. Pullback
6. Resistance
7. Support
8. Throwback
9. Trendline
10. Triangle
11. More Related Terms
12. Read more: http://www.investopedia.com/terms/b/...#ixzz1Q8VyEBll

Channel Breakout Trading Can Be Highly Profitable

Channel Breakout trading can be highly profitable. But first what is a channel? A channel is formed when the price action gets bound between two trendlines. Now, these two trendlines can be horizontal, ascending or descending. Think of these two trendlines as the support and resistance but this time these support and resistance lines can be ascending as well as descending or horizontal as usual.
A channel is formed when the price action is bounded between two trendlines that can be horizontal or sloping. Trading channel breakouts can be a highly profitable strategy and is highly popular among professional traders. Reason is simple.
Price action will not stay bound within the channel forever. At some point, there will be some fundamental shift in the market that will trigger the price action to burst out of the trading range.
A rectangular channel is formed when the two trendlines are horizontal. In case of a rectangular channels, figure out the vertical pip range of the channel.
The reason for this is that channel breakouts in the same direction of the channel tends to exhaust themselves pretty soon. As the market is already moving in the same direction, the momentum behind these breakouts in the same direction of the trendlines gets exhausted soon.
Now, first you need to identify the channel on an hourly or daily chart. Then you should confirm price momentum with MACD ( Moving Average Convergence Divergence) or RSI ( Relative Strength Index) indicators.
Now, the most important question is how to identify channels? You can identify channels on an houly or a daily chart bydrawing simple trendlines. Now you need to confirm the momentum in the price action with the help of Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD).
Channels get formed before the release of some fundamental news most of the time. This happens as most of the traders stop trading in anticipation of the fundamental news annoucement that can be FOMC Meeting news announcement with an expected interest rate change or it can be the NFP Report Release. Whatever, breakout trading if done correctly can be highly profitable.
Mr. Ahmad Hassam has done Masters from Harvard University. Download this highly profitable Magic Breakout Forex Strategy by Tim Trush and Julie Lavrin FREE...

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http://www.financialnewsline.com/cur...ly-profitable/

See #219


Hi Larry

News seems for me like little monkeys. If you would it trade you don't know in which direction. Big capital like it to lead you in the counterpart direction before the market change, moreover in these special situations where news could coming up. I don't like trading the news, but there are times I am in the market with open orders and I have to hedge these orders sometimes. Often market price come down again.
I know traders who practice the breakout trading by news. I focus to trade the channels. Channels get formed before the release of some fundamental news most of the time. This happens as most of the traders stop trading in anticipation of the fundamental news annoucement that can be FOMC Meeting news announcement with an expected interest rate change or it can be the NFP Report Release.

Kindest regards
FXcube

AUDCHF, Daily, 2011 June 23
AUDCHF, H4, 2011 June 23

Long @ 0.8829

and one Long again at 0.8650 if price would go down there.

Thank you for trying. Could you give us the pin code? The page does not let us see your result's statistics.

It is removed!

Try it again, now, please.

Money-, Order- & Risk-Management

Demo Account, Deposits: 25'000.-$

There's more than one way to skin a cat.

I like to face problems at odd times. The figure below is one. Can tell me someone where could be the problems in the frame below and may be carve out which steps could solve it so that the advantages far outweight the disadvantages?

There isn't just one way of doing it.

I wish you success & happiness!

Kindest regards
FXcube

Hi. When I copy and paste "http://www.mt4i.com/users/forexcube" url, I see this scene. It's asked -pin code- to view results of your trades. Thanks a lot.

By the way, the picture above, which shows the open trades of
-58.000$, tells me that a trader always must control the risk of ruin.

I see this and no pin-code has been demand.

See #233, #234;

If one would trade with his real account in this kind of way I would think he couldn't be financially successful and if he put out all the hedging orders then the trader's job could be solely to control the risk of ruin. No doubt! Might be that things aren't as bad as all that. To upgrade the solution area you make step by step without terminating the account. It's an exercise to school oneself to patience. At first he has to downsize the extraordinary high lot sizes at higher timeframes when the market would go in one direction (up or down) until the Shorts or the Longs could be partition in smaller lot sizes in their profit zone. With a 25'000.-$ Account you could divide into many 0.5 or 1 lot sized orders beginning with every bigger order at first. Then you have to wait for some good market environments where you could exit some 0.5 or 1 lot size orders progressive. In the end the most of all these big lot size orders have to be arranged in a staggered manner. Another solution could be "why not put more money at this account? 50'000.-$ or so" - but we can't do this at a demo account. If a trader lose one's temper then,..., my sentiments exactly,...may be he has to control exclusively his risk of ruin. Okay, it's an example to comlpicate matters but you could try to have to reposition things. Let's see in the next weeks how this task could be efficiently solve. If you take the easy way out you have to execute all orders at one time and that's all and you're runing in your profit zone (+15'600.-$) further on.

Thank you for this trading system so far its been a blessing, and have used it only for 1 day so far. I keep studing it +20pips E/U

Hello Egarcia74!

I wish you success & happiness!

FXcube

Today

+ 14'850 pips

http://twitter.com/#!/forexcube

Hi mgokhank

I think I have delete the pin. If not I have sent you a mail with the pin.

Kindest regards
FXcube