Early Bird Forex Breakout system

Forex Trading Nigeria

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Posted by on Tuesday August 23, 2011 17:33:45:

Break out system is a method you use to make some gains assuming the price of your currency pair breaks into a trend and continues along that line.
Have you ever noticed a forex chart whereby prices suddenly swing in one direction and continues in that direction for about 1 hr. Well, with this breakout system, we would be able to catch the bull or bear whichever sides it goes. Some call it a win-win position but we are going to combine this with early bird strategy. Early bird is simply a strategy that involves making an entry early in the morning, for instance close to the Asian session when most traders are still sleeping or just about getting up. We would be doing this before the Euro and US session which normally starts at around 8 or 9am and 1 or 2pm Nigerian time. Waking up early helps you see how currency prices have fared and be able to take a good position at an early stage for even maximum profits. There are many cases where I have regretted not taking a position that would have gained me an easy 100 pips just by using this early bird strategy. Remember, an early bird catches the worm. Now due to the fact that we may not always be able to predict which side the price would normally go next, early bird has its limits as market may go against you but now that we would be combining it with a breakout strategy, we would be able to catch the momentum, whichever side it goes but we won't stay for long, just for 1 hour.

So, how do we do this?
Well, its simple, just follow these steps and gain some pips before the Frankfurt session(7 am):

- Wake up by 5.45 am Nigerian time
- Login to your platform
- Set the time frame to 1hr
- At about 5.55 am, get the highest high and lowest low prices for the past 5hrs e.g 2am to 6am
- Set a buy stop order at the highest high price +5 pips
- Also set a sell stop order at the lowest low price +5 pips
- Place your stop loss points at the same time at _+3 pips above highest high for sell order and -3 pips below lowest low for your buy order
- Set your exit target at about 20 pips or more but we may still have to close it manually if it does not hit
- Allow the position that first clicks to run for about an hour

At about 6.55am, close all orders and do something else for the day.

Tip: You can also use just the break out system during the power hours(8am - 12pm) and target up to 80 pips