Support & Resistance Breakout Forex Trading Strategy
Make way for the support & resistance breakout forex trading strategy, a system that guarantees sustained profit generation all day long. Let’s go over the settings and trading rules below.
MetaTrader4 Indicators: ArrowsAndCurves.ex4 (default setting), ASuperSR7.ex4 (default setting), Coppock.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours
Recommended Trading Sessions: London Open | New York Open
Currency Pairs: (USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF)
Buy Trade Example (Click the image for full size)
Long Entry Rules
The following conditions or rules will trigger a long entry:
- Watch out for the blue upward pointing arrow of the ArrowsAndCurves custom indictor, once this forms on the chart, it is a trigger for a bullish signal.
- If the Coppock custom indicator forms red histogram above the 0.00 level, it is a signal of upward price pressures and as such a buy entry is appropriate.
- If the red dotted lines (or resistance levels) of the ASuperSR7 custom indicator is breached during an uptrend, it signals a sustained upward price pressure.
Stop Loss for Long Entry: Place stop loss on S1/S2 levels of the ASuperSR7 custom indicator.
Exit Strategy/Take Profit for Long Entry
The following indicator or chart patterns are indicative of a reversal, thus triggering an exit or take profit:
- If the red downward pointing arrow of the ArrowsAndCurves custom indicator forms above price bars, it is an indication that price is being pushed downward.
- If the red histogram of the Coppock indicator fades around the 0.00 level, it is a signal of increased downward price pressures, making an exit or take profit most probable.
- If price hovers around red dotted resistance level of the ASuperSR7 custom indicator without breaching it, add this pattern to rule 1 an rule 2 and what you have is a perfect exit or take profit trigger.
Sell Entry Rules
Our sell entry is defined by the following rules:
- If the red downward arrow of the ArrowsAndCurves custom indicator forms above price bars, it denotes downward pressures, as such a sell is initiated.
- Downward forming red histogram of the Coppock custom indicator below the 0.00 level, denotes a sell signal.
- If price fails to beach the most recent resistance level i.e. the red horizontal dotted lines of the ASuperSR7 custom indicator as seen on Fig. 1.1, we say price is more probable to head downwards.
Stop Loss for Sell Entry: Place stop loss on R1/R2 levels of the ASuperSR7 custom indicator.
Exit Strategy/Take Profit for Sell Entry
The following conditions or rules will define our exit or take profit from open positions:
- If the blue upward pointing arrow of the ArrowsAndCurves custom indicator forms below price bars, it is an exit or take profit trigger.
- If the red histogram of the Coppock indicator fades around the 0.00 level, it indicates diminishing sell pressures and as such an exit or take profit is well suited.
- If price hovers around blue dotted horizontal support level of the ASuperSR7 custom indicator without breaching it, then price is experiencing diminishing volatility and an exit is appropriate.
About The Trading Indicators
The ArrowsAndCurves.ex4 custom indicator combines two Moving Averages formed in a channel pattern with a blue or red arrow to deliver buy and sell alerts respectively.
Seemingly, the Coppock.ex4 custom indicator is built on three different Moving Averages i.e. Exponential, Linear Weighted, and Simple Moving Averages as it traces trend along on the chart.
Finally, the ASuperSR7.ex4 custom indicator plots red horizontal dotted lines and blue dotted horizontal lines in determining key resistance and support level, thus allowing us know when price will fly.