Submit by Joy22

The 2 bar breakout system is designed to capture short term trends by going long or short depending on the pattern formed by the 2 most recent price bars.  The essence of this method is to look for reversal of the immediate directional momentum.

The rules of this method are:

Long trades

Enter:

1. Today’s low is less than the previous day low

2. Today’s high is less than the previous day high

3. Today’s close is less than the open

4. Go long at the next trading bar if the price goes above today’s high + 1 tick

Exit:

1. Use a trailing stop at previous day’s high

To see this method in action, let’s try it out on EURUSD currency pair.

In the picture below Two-bar Breakout System Trading System in action.

Share your opinion, can help everyone to understand the forex strategy.