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Correlation Forex Breakout Strategy
This is a trend breakout trading system based on an indicator of correlation of currency pairs. This shows the correlation between 8 currencies.
This works on a 15 minute, 60 minute and 1 hour timeframe. This is applicable to the following pairs and instument: EUR,GBP, AUD, CHF, USD, NZD, CAD, JPY, XAU.
Forex Indicators:
- S-B levels,
- Exponetial moving average 50, low, close,
- Exponetial moving average 50, high, close,
- RSI (14, period, close),
- Correlate (correlation between 8 currencies).
Rules:
Open 4 hour or daily chart and determine the trend direction. It must be trending up if you want to go long and down if you want to go short..
Buy Entry:
- Trend up time Frame 4H or daily.
- RSI is greater than 50;
- Price above the 50 EMA high,
- Correlate: Green line above royal blue line.
Sell Entry:
- Trend up time Frame 4H or daily.
- RSI is less than 50;
- Price below the 50 EMA low,
- Correlate: Green line below royal blue line.
Exit position
- Place initial stop loss c 5-10 pips above/below the entry bar.
- Exit at the levels of support or resistance.
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