6# Trendline Breakout and Fibonacci Trading System

Fibonacci Breakout Trading System

Submit by Joy22

This system is a breakout system. We are going to use trend lines and Fibonacci levels.

We are not going to waste our time predicting the trend. Instead, we are going to follow the trend and wait for price to move and confirm our signals before we enter the market.

Trend lines simply represent the direction of the market.

In up trends, the line should be drawn below the price. Connecting at least 2 lowest lows. The more lowest lows and higher highs the trend creates, the more valid – powerful – it becomes.

In down trends, the line should be drawn above the price. Connecting at least 2 lower highs. The more lower highs and lower lows the trend creates, the more valid – powerful – it becomes.

There are two kinds of trend lines that we are going to use with this system. Main trends small trends.

The main trend line, should represents main direction of price. While the smaller trend should represents the minor – inner - trend, going in the opposite direction of the main trend. By inner trend I mean, a smaller trend within the main big trend.

Let‘s see how that looks like on the chart ( EUR/USD – 4H )

Long Entry:

1 – Main Trend is Up

2 – Inner Trend is Down

3 – Breakout in the direction of the main trend

Attach Fibonacci levels to the last wave, 0 level on the low and level 100 on the high.

Entry level = Fibonacci level 100

Stop loss level = Fibonacci level 0

Targets = Fibonacci levels 161 – 261 and 423

Short Entry

1 – Main Trend is Down

2 – Inner Trend is Up

3 – Breakout in the direction of the main trend

Attach Fibonacci levels to the last wave, 0 level on the high and level 100 on the low.

Entry level = Fibonacci level 100

Stop loss level = Fibonacci level 0

Targets = Fibonacci levels 161 – 261 and 423

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

Write a comment

Comments: 7

#1
afshin (Thursday, 17 September 2015 10:03)

thanks
what is the best time frame?
#2
chi (Saturday, 10 October 2015 04:50)

can someone tell me why breakout is a point in first graph but a line in the last one? yellow lines are fibonacci?
#3
ｓ (Sunday, 19 May 2019 09:40)

Thank you
#4
Sean (Friday, 07 May 2021 07:19)

Can I have ex4 files please, instead of mq4
#5
Sangay sangaysherpa788@gmail.com (Tuesday, 27 July 2021 03:05)

I am an investor and looking for EA based on trendline channel.
#6
valentino (Wednesday, 30 August 2023 00:22)

Hi everyone,

I want someone to develop an EA for me that can clearly do the "break and retest" strategy. As most traders/developers know, after a break of a supply / demand zone, usually a pullback happens to retest the zone. The retest of the zone is the optimal time to enter the trade in the direction of the breakout.

The EA needs to be able to do the following:

make sure the pair you are trading is trending and has large, nice movements
the robot plots the supply / demand zone that is broken and a horizontal trendline representing the broken support/resistance line. Make sure that the horizontal line was broken with a strong, larger than average candle
make sure the s/r line was crossed only once.
make sure that when you get an alert, it was the first retest of the zone / line.
before and after the break, make sure the price made nice big moves both above and below the zone.
the best signals are when you get alert right on the s/r line.
The concept is very simple but I'm looking for a programmer that understands the strategy quite well so he can duplicate it on a workable robot.

Thanks!
#7
Jeet (Tuesday, 24 October 2023 19:33)

Hi ,
How to fix it on mt4?