This is a Breakout Simple System. It is a trading strategy that is suitable for trading in the foreign exchange market and other markets as well if it is listed on your metatrader trading platform. Although the system is named Breakout simple system it is seen like a trend following strategy. Yes, of course it is a trend following strategy which generates the entry signal based on the price breakout. To increase the chances of winning you should trade only in the direction of the trend otherwise you can trade in counter trend direction too if you wish to take extra more risk.
We will be using five technical indicators in Breakout Simple System which will generate the trading signal in the market. This trading system can be used in any time frames and in any pairs.
If the Breakout Simple System is installed correctly in your trading platform your chart should look like this:
- Slope Direction Line: It is the custom made moving average that is seen on the price chart. Slope direction line can be found in two colors; aqua and magenta. It is in aqua color an uptrend and magenta in a downtrend.
- Price Channel Stop: It is custom made parabolic SAR. It comes out in two colors; Magenta and aqua.
- Hot Dots: These are the large blue and red dots seen on the screen. Basically these dots are the entry signal for our system. Appearance of blue dot indicates buying signal while red dot indicates the selling signal.
- Cynthia’s I Trend: It is a combination of two oscillators which are magenta and green in color. Usually entry signals are generated when the two oscillators crosses each other. In an uptrend green colored oscillator crosses magenta colored oscillator upwards and in a downtrend magenta colored oscillator crosses green colored oscillator downwards.
Buying Conditions Using Breakout Simple System.
- A blue hot dot should appear below the price chart.
- Price channel stop should be aqua in color.
- Slope direction line should be aqua in color.
- Green colored oscillator of Cynthia’s i Trend should cross above the magenta colored oscillator.
- Place your stop just below the recent swing low.
- You should take your profits when a red hot dot appears above the price chart.
Selling Conditions Using Breakout Simple System.
- A red hot dot should appear above the price chart.
- Price channel stop should be magenta in color.
- Slope direction line should be magenta in color.
- Magenta colored oscillator of Cynthia’s i Trend should cross above the green colored oscillator.
- Place your stop just above the recent swing high.
- You should take your profits when a blue hot dot appears on the price chart.
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