22# Asian Breakout II Trading System

Submit by Joy22


Time Frame H1.

Currency Pairs JPY

Locate four hourly candles from 00:00 to 03:00

Check this sample below:



Asian Breakout II  Trading System

Asian Breakout II  Trading System

Find the highest high and lowest low of these candles.

Here is a sample:



Build two parallel horizontal lines through those extremes

like it is shown on the chart below. In this example the highest

high is 135.80 and the lowest low is 135.46. As you can see these

lines are forming a tunnel. Both sides of it will be our breakout


Here is a sample:


The idea of the system is – trading a valid breakout of

one of the lines (high or low). Enter with a buy order as soon as

the price breaks out 3 pips above the break point.

In this case enter with a buy order at 135.80 + 3 = 135.83

See example for high breakout:


Incase the low breakout occurs, enter with a sell order

as soon as the price drops 3 pips lower than the lowest low.

In the example below the lowest low is 135.72,

So enter with a sell order at 135.72 – 3 = 135.69

Here is a sample:


Stop loss: there are two options for the stop loss order:

a) Place the stop loss on the other side of the 00:00-03:00

candle tunnel.

See sample for stop loss incase of a low breakout below:



See sample for stop loss incase of a high breakout



Take profit: there are two options for taking the profit:

a) Your target is 20 pips, close your trade as soon as your profit

reaches 20 pips, or use trailing stop.



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

Comments: 3
  • #3

    William (Sunday, 19 July 2020 21:17)

    Hi goodman,

    I guess my answer comes a little bit late but I have tried to see on the history and it turns out that it is between 04:00 and 07:59 (AM) GMT. Happy to see that my broker allows me to go that far back to analyse some charts! For european session with european currencies in the pair, you may consider 03:00 - 06:59 AM GMT. It seems very odd that the 4 candles are that close given that asian stock exchanges open much earlier. Anyway...
    I may also add that you can furtherly filter the daily trend by a potential bounce of the price action on the channel of EMA34Close, EMA34High and EMA34Low. Obviously there are no perfect rules but maybe give some indication...

  • #2

    Sam (Monday, 24 September 2018 08:59)

    Is this time 00.00- 03.00 GMT?

  • #1

    goodman (Tuesday, 03 March 2015 09:28)

    What time zone is this in

Asian Breakout