29# Forex Breakout Trading System
Submit by joy22
The Trend Breakout system is a trading system that trades with
the trends and focuses on when a currency breaks out and begins to strongly follow the current trend.
Trading with the trend is always a safe way to trade. Most currencies tend to trend
strongly in one direction for long periods of time, and trading with that strong trend is always better than trading against it.
With our system of trading, we will be trading off of the daily charts, and it is a night before type of system. That is, the trades you make in the morning will be based off of chart data from the end of the day prior to the one you are trading. A trade will typically be held for a day or two, and sometimes can last up to 1 week.
This trading system only uses one indicator. We use a 21 period Simple Moving Average.
This indicator is really just used to ensure we are on the right side of the trend, and our trades will be made off of the bars on the charts themselves.
To setup for this trading system, fire up a daily chart of any currency pair, and add a 21 SMA. Your chart should look like this:
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