Forex Daybreak Strategy For Metatrader 5
The Forex Daybreak strategy for Metatrader 5 is designed to allow traders get quick access to buy and sell trading signals at the start of each trading day, regardless of where they’re situated on the globe.
All you’re required to do is to add the technical indicators listed here onto your trading chart in order to achieve the desired results.
We’ll try to keep thing simple and in this regard, our daybreak strategy only requires the use of two unique technical studies: Ichimoku Kinko Hyo and the Drunkard walk.
That pretty much explains the background of what and why of the Forex Daybreak strategy for Metatrader 5: it’s all about grabbing the upside or downside trend move during the early hours of the day.
MetaTrader 5 Indicators: Ichimoku Kinko Hyo.ex5 (Default Setting), Drunkard walk.ex5 (Default Setting)
Trade Style: Scalping, day trading, swing trading
Trading Sessions: London | New York | Tokyo
Currency Pairs: Majors, cross pairs, exotics
Platform: Metatrader 5 (MT5)
Buy Trade Example: EURUSD, H1 Chart
Trading Strategy Rules For Buy and Sell Trades Explained
Enter a buy trade if the following trading conditions are met:
- If the sandy brown cloud of the Ichimoku Kinko Hyo Metatrader 5 forex indicator gets placed below the candlesticks as depicted on Fig. 1.0, price is said to be pressured to the upside i.e. a trigger to go long on the currency pair of interest.
- If the green line and lavender cloud of the Drunkard walk custom indicator pops up within the indicator window as illustrated on Fig. 1.0, bulls are said to be driving the market to higher prices, therefore a buy signal will suffice.
Suggested Stop Loss for Buy Entry: Place stop loss below medium-term support.
Suggested Exit Strategy/Take Profit for Buy Trade
Exit the buy trade if the following trading conditions are met:
- If the Ichimoku Kinko Hyo indicator displays a thistle cloud while a bullish trend is running, it is indicative of a probable bearish reversal, therefore an exit or take profit is recommended.
- If the green line of the Drunkard walk forex indicator reverts to red during the course of a bullish trend, bulls power is said to be weaning, as such an exit or take profit will suffice.
Open a sell trade if the following trading conditions are met:
- If the thistle cloud of the Ichimoku Kinko Hyo forex indicator gets positioned above the candlesticks as shown on Fig. 1.1, price is said to be dragged lower i.e. a trigger to go short on the currency pair of focus.
- If the red line and misty rose cloud of the Drunkard walk custom indicator pops up within the indicator window as exemplified on Fig. 1.1, bears are said to be pushing price lower, thus a signal to sell at once.
Suggested Stop Loss for Sell Entry: Place stop loss above medium-term resistance.
Suggested Exit Strategy/Take Profit for Sell Entry
Exit the sell trade if the following trading conditions are met:
- If the Ichimoku Kinko Hyo indicator pops up a sandy brown cloud during a bearish trend, a bullish reversal is said to be on the horizon, therefore an exit or take profit is advised.
- If the red line of the Drunkard walk forex indicator reverts to green while a bearish trend is running, bears power is said to be halting, thus a trigger to exit or take profit forthwith.
Sell Trade Example: EURUSD, H1 Chart
MT5 Trading Indicators Used For This Strategy
The Ichimoku Kinko Hyo indicator is an appropriate technical tool, particularly for newbies who want to understand trend momentum, direction, pinpointing reversals and locating entry levels
The Drunkard walk Metatrader 5 forex indicator is also known as Random Walk, as revealed by Ron Davis in his article “random Walk Revealed”.
The indicator is used to spot current prevailing trends.