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55# The fade the break forex strategy

The fade breakout

 

Submit by Adrian 03/11/2013

 

Time Frame

The fade the break forex strategy works with the 15-minute (M15), 30-minute

(M30) or 60-minute(M60 ) candle.

Currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD NZD/USD.

 

Forex indicators

This forex strategy is not using indicators based on mathematical algorithms. but only indicators price action support and resistance.

Reccomended indicators:

Pivot points levels, Fibonacci retracement, Static and dynamic support and resistance.

 

Strategy details

Markets often reverse after a failure to break above the resistance level or below the support level. At the resistance level, the failure is characterized by the shadow of the candle that goes above the resistance level but fails to close above it. Subsequently the price falls back below the resistance level. At the support level, the failure is characterized by the shadow of

the candle that goes below the support level but fails to close below it.

Subsequently the price rises above the support level.

 

 

Long Entry

Identify the support level.

2. Identify a candle that has a shadow that goes below the support level.

3. Wait for that candle to close as a bull candle. This is called the falsebreak

candle. (See picture 1 .)

 

4. Enter at the opening of the next candle.

5. Set a stop loss of 5 pips below the low price of the false break candle.

6. Set two profi t targets for this trade. Set the two targets at a risk to

reward ratio of 1:1

 

Short Entry

1. Identify the resistance level.

2. Identify a candle that has a shadow that goes above the resistance level.

3. Wait for that candle to close as a bear candle. This is called the falsebreak

candle. (See picture 2 .)

4. Enter at the opening of the next candle.

5. Set a stop loss of 5 pips above the high price of the false-break candle.

6. Set two profi t targets for this trade. Set the two targets at a risk to

reward ratio of 1:1.

 

The fade breakout is a forex strategy that requires experience.

Indicators for fade break forex strategy
Indicators for fade break forex strategy
Indicators for Fade Breakout forex strat
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Picture 1:The fade the break forex  strategy
Picture 1:The fade the break forex strategy
Picture 2 ,The fade the break forex  strategy
Picture 2 ,The fade the break forex strategy

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