Linear Regression Breakout System is a forex trading system. If you are seeking a simple yet powerful forex trading system there can’t be any alternative to this one. The signals generated by the system are crystal clear and easy to understand. The simplistic nature of the Linear Regression Breakout System makes it easy for the newbies to make money out of this forex trading system. This forex trading system has potential to generate nice profits for you if you can follow the rules of the system with high level of self discipline. One of the reasons why using this system has become easier is because of the fewer numbers of technical indicators used in this system. The Linear Regression Breakout System has two indicators in the main chart window while only an indicator in an indicator window.
This forex trading system can be used by all level of traders. It can be used in all time frames. It can be used with every currency pairs. These features make this system very flexible and dynamic.
When Linear Regression Breakout System is correctly loaded on your Metatrader platform, your chart should look like this:
- Linear Regression Breakout
Linear Regression Breakout is a channel that is automatically drawn by the system. The main concept of using this indicator is when the price breaks out in either of the directions; we enter in to that direction. For example, if the price breaks upside, you enter long and vice versa.
Arrows can be seen on the main chart. These arrows are the actually the signal generators. Arrows can be in different colors. When the breakouts of the channels occur, arrows appear on the main chart.
Schaff is a custom made indicator which consists of an oscillator which changes its color to green and red. When the market is in bullish move the oscillator is green and vice versa.
Buying Conditions Using Linear Regression Breakout System.
- Wait for the price to breakout above the channel.
- After the breakout on the upper side, an arrow pointing upward should appear on the chart.
- The Schaff oscillator should be green.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the channel breaks to the downside.
Selling Conditions Using Linear Regression Breakout System.
- Wait for the price to breakout below the channel.
- After the breakout on the down side, an arrow pointing downward should appear on the chart.
- The Schaff oscillator should be red.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the channel breaks to the upside.
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