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Forex Channel Breakout Strategy
This system uses a 4 hour, daily and weekly timeframe and applicable to all pairs.
Setup:
- Calculate a 10-bar price channel of highs and lows.
Long Entry:
- There must be a close above the top line of a 10-bar price channel.
- There must be a new four-bar low within 10 bars of the breakout.
- Buy on the next open.
Short Entry:
- There must be a close below the bottom line of a 10-bar price channel.
- There must be a new four-bar high within 10 bars of the breakout.
- Sell short on the next open.
Exit Position:
There are various option in exiting a position. First is we enable a money management stop, a break-even stop, and a % Risk Trailing stop.
Second would be exiting a long position on a rally to a new eight-bar high and a short position on a decline to a new eight-bar low.
Take Profit at 60 pips on EU, 70 pips on GU at a 4 hour Time Frame.
For Daily time frame, take 200 pips for Eu and 250 for GU.
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