The Ultimate Daily Breakout Forex Trading Strategy

Do you want to know more about breakout trading and day trading strategy? Watch our latest video on the ultimate daily breakout forex trading strategy to learn how to easily get profitable trading results.

The Daily Breakout Forex Trading Strategy Explained

One of the easiest ways to train the financial markets is to go with the trend. By using the Daily Breakout System, this ensures that you should be with the overall momentum of the marketplace, and it gives you an opportunity to profit off the volatile moves. On the attached chart, I have the AUD/JPY currency pair on the one-hour time frame loaded. As you can see, I have dashed lines via the period separators on the chart. Every time one of those lines is crossed, we go into another trading session.

The trading system is simple: you take a break out of the previous days close and follow the market. Preferably, you can go with the longer-term trend, but for some traders, they will take the trade either direction. You can see that I have several rectangles on the chart that show when we would have placed the trade.

You simply enter a buy order on a break of the previous day’s high price, or a sell order at the previous day’s low price. You then place a stop loss at 50% of the total session range of the previous day, and hold your position. As far as take profit is concerned, typically people will move stop losses every 24 hours. So, for example, on the session that you entered, you would then put the stop loss at 50% of that move after that day is done, and so on. Eventually, the market will knock you out of your position, telling you when to exit.