This forex strategy has much in common with the london breakout strategy, but does not look at the Asian trading session on the forex market. The pounds dollars is a currency pair that is very popular in the foreign exchange market.
This strategy is based on a daily phenomenon in the GBPUSD currency pair. We look only at 12:00 p.m. to 2:00 p.m. GMT.
This is London time
Based on this time period we are going to determine entry and exit point.
How to trade
• Open a 15-minute candlestick chart on GBPUSD currency pair
• Make a vertical line at 12:00 GMT
• Make a vertical line at 14:00 GMT
• Make a horizontal line at the HIGH of the candles between the vertical lines you just created
• Make a horizontal line on the of the candles between the vertical lines you just created
• Open a position when the price of the GBPUSD breaks one of the HIGH or LOW line, This is your "entry point"
You could consider buying and selling limit orders to give up your trades to automate.
Always place a stop loss order 15 pips above or below your "entry point".
Set a take profit target of approximately 20 pips until you know the system. On some days it is also easily possible to 50 to 90 pips to reach.
Trailing stops can help you take full advantage of a movement without running the risk that you lose all accrued profits again. A trailing stop is set up on a certain fixed distance from the current market price, as a fixed percentage or a fixed number of pips. The price moves in the right direction then you stay in the trade but is also a part of your profit is locked, so that when the price moves against you will not lose all previously accumulated profits again.
Do not trade on days when there is great news or an event between 12:00 - 14:00 GMT.
Do not trade on days when the price is not break one of the horizontal lines within 1.5 hours. Cancel any limit orders and wait until the next day.
If the difference between the HIGH and LOW the pips is more than 60, it is possible not be a good day. IF the price difference between HIGH and LOW is less than 60 pips, you will probably make a nice profit.
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