Breakout Sniper Pattern Forex Strategy

The Breakout Sniper Pattern Forex strategy is a reversal trading pattern that primarily deploys rising and falling wedge price patterns for good profit taking.

For those traders who are patient enough, this strategy is built to deliver precise low risk entries with nice profit potential.

One of the amazing things about this strategy is the wedge patterns it carves out, which becomes easy to spot on the activity chart.

This certainly makes the job of price action traders much easier, not to mention more profitable.

First thing to know about the Breakout Sniper Pattern Forex strategy is that it frequently hints a possible great trend reversal in the market.

Chart Setup

MetaTrader4 Indicators: breakout-pattern.ex4 (Default Setting), trend-finder-indicator.ex4 (Inputs Variable Modified; SSP=16), trend-reversal.ex4 (Inputs Variable Modified; fast_ema_period=14, slow_ema_period=24, signal_period=7)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a bullish trade if the following indicator or chart pattern gets put on display:

  1. If the breakout-pattern Metatrader 4 forex indicator forms a red falling wedge following a downtrend on the activity chart, it is a signal hinting a possible reversal, therefore a buy alert will suffice.
  2. If the blue line of the trend-finder-indicator intersects the red line to stay above it as depicted on Fig. 1.0, price is said to be pushed higher, thus a signal to go long on the designated forex pair.
  3. If the blue dotted line of the trend-reversal custom indicator intersects the red dotted line to stay above it as illustrated on Fig. 1.0, overall market sentiment is said to be bullish, and thus a buy signal will do.

Stop Loss for Buy Entry: Place stop loss below the most recent support level.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit from all trades if the following rules or conditions takes precedence:

  1. If the breakout-pattern indicator forms a blue rising wedge during the course of a bullish trend, it is a signal to exit or take profit at once.
  2. If the blue line of the trend-finder-indicator crosses the red line to go below it while a bullish trend is running, an exit or take profit is advised.
  3. If the blue dotted line of the trend-reversal custom indicator cuts across its red dotted line to go under it as seen on Fig. 1.0, it is a trigger to exit or take profit immediately.

Sell Entry Rules

Go short if the following setups gets displayed rightly on the activity chart:

  1. If the breakout-pattern custom indicator forms a blue rising wedge following an uptrend on the price chart (see Fig. 1.1), it is indicative of a likely bearish reversal, thus a trigger to go short on the selected fx pair.
  2. If the red line of the trend-finder-indicator intersects the blue line to stay above it as illustrated on Fig. 1.1, the general market sentiment is said to be bearish, therefore a sell alert is recommended.
  3. If the red dotted line of the trend-reversal custom indicator intersects the blue dotted line to stay above it as exemplified on Fig. 1.1, bears are said to be dragging price lower, as such a sell alert is advised.

Stop Loss for Sell Entry: Place stop loss above the most recent resistance level.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the breakout-pattern indicator forms a red falling wedge pattern while a bearish signal is running, it is a signal to exit or take profit immediately.
  2. If the red line of the trend-finder-indicator intersects the blue line to go below it during a bearish trend as shown on Fig. 1.1, an exit or take profit is recommended.
  3. If the red dotted line of the trend-reversal custom indicator cuts across its blue dotted line to go below it, it is a trigger to exit or take profit straightaway.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The breakout-pattern indicator is a technical tool that automatically draws blue colored rising wedge and red colored falling wedge on the price chart.

The trend-finder-indicator, just as the name implies is a trend following technical study that is comprised of two lines (red and blue), where buy/sell signals gets triggered when the lines cross.

The trend-reversal technical tool offer signals by clearly deploying its blue and red dotted lines.

If the blue dotted line aligns above the red dotted line, it is a bullish signal.

A sell signal is in place when the red dotted line overlaps on top of the blue dotted line.

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