Trend Plus Breakout Strategy Download

Similar to the Hans Breakout method but with adjustments meant to improve the box size from which trading signals are created, the Trend Plus Breakout strategy is a solid trading system that relies on the ideas of the London Breakout strategy. The Trend Plus Breakout method, which is great for traders who concentrate on the Forex market and want to profit from the particular swings during the early London session, will be covered in detail in this book.

The technique is based on a 15-minute timeframe and targets the early trading hours in Berlin, which are from 6 to 9 AM GMT. The technique finds a “box”—a range that encompasses the peak and low price movements—during these hours. Finding breakthrough points when the market breaks out of this defined range is the aim.

It is completely manual to use this London Breakout Strategy. The trader will decide whether to enter the market, put protective stops, or take profitable profits when the indicators generate the signals. As a result, the trader needs to understand the concepts of risk and return and know when to enter and quit based on initial support and resistance zones.

This Breakout Strategy can provide you with trade signals that you can use exactly as they are or, as is advised, refine the signals further by adding your own chart analysis. Although this technique is accessible to traders of all skill levels, it can be helpful to practice on an MT4 demo account until you have the consistency and self-assurance necessary to move on to actual trading.

Components of this Breakout Strategy

The Trend Plus Breakout Strategy uses a number of trend-momentum indicators to help interpret the breakout’s intensity and direction. These elements guarantee that trades are carried out with the support of underlying trends as well as price movement. This is how these parts work together:

• Box Formation: The box is formed between 6 AM and 9 AM GMT Berlin Time. Make sure the box time matches according to your broker time, so adjust it using the indicator settings.
• Trend-Momentum Indicators: The strategy uses specific indicators such as the Trend Plus NR bar (which appears in green for buy signals and red for sell signals) and the Trend Plus bar (color-coordinated in the same way), which help confirm the direction of the market trend.

Any currency pair as well as other assets including equities, commodities, cryptocurrencies, precious metals, oil, gas, etc. can be traded using the London Breakout Strategy. Additionally, you may use it on whatever time frame—from the 1-minute to the 1-month charts—that works best for you.

Trading rules

When implementing the London Breakout Strategy, don’t forget to tighten your stop losses around High Impact News Releases or stay out of the market at least fifteen minutes prior to and following these events.

As usual, effective money management is essential to getting the best results. You need to understand psychology, emotions, and discipline in order to trade profitably. Understanding when to trade and when not to is essential. Refrain from trading in adverse periods and conditions of the market, such as low volume/volatility, outside of main sessions, exotic currency pairs, wider spread, etc.

Buy Signal

• Candle Close: A candle must close above the upper line of the box.
• Price Position: The price should be above the trend medium and high.
• Indicator Confirmation: Both the Trend Plus NR bar and the Trend Plus bar should show green, indicating a bullish momentum.

Sell Signal

• Candle Close: A candle must close below the lower line of the box.
• Price Position: The price should be below the trend medium and low.
• Indicator Confirmation: Both the Trend Plus NR bar and the Trend Plus bar should show red, indicating a bearish momentum.

Exit Strategy

• Stop Loss: A stop loss should be placed between 18 and 25 pips from the entry point, depending on the volatility and characteristics of the currency pair.
• Profit Target: The minimum profit target should aim for a 1.4 ratio to the stop loss. This risk/reward ratio helps in maintaining a profitable trading edge even if not all trades succeed.