Previous Day Breakout Edge System
Before starting this topic, I want to remind you something very important
If you are looking for a system that will allow you to trade for 15 minutes every day on the beach while sipping a mocha and make huge returns - then this is not for you.
With that being said, welcome to Breaking Through the Limbic System the Day Before .
Initial setup
1. Load the chart of the currency you want to trade
2. If using TradingView, add the following indicators:
2a. Use loop lines to separate dates - This is especially true for me, the trading day starts at 10pm (GMT)
2b. Search for the previous day’s high and low indicators (there are many different ones available on the platform)
2c. Simple Moving Average (SMA) for filtering, set to 34 - optional
3. Now you are ready!
Strategy
1. You are looking for a long position that breaks and closes at the previous day's high or a short position that breaks and closes at the previous day's low.
1a. If filtering using SMA, you will be looking for prices above the long price if the price breaks and closes above the previous day's high and of course vice versa.
2. Once a breakout is formed, you will need to add a position at the opening price of the next 1H candle.
3. Stop Loss should be 12.5 pips and Take Profit should be 25 pips, at which point the R:R ratio is 2.
4. Repeat whenever you have the chance, and if you feel positive, you can also adjust your position according to your aggressiveness.
Now..you may have some questions about its effectiveness or frequency of winning.
Before you do this, take a moment to analyze where the advantages are, the clues are written in the paragraphs above, traders who understand statistics and probability will relate to this strategy, no matter how simple it sounds.
Note: I have attached the EUR/USD chart on the 1 hour time frame to give viewers a visual representation of the strategy, in this case we have 2 wins and 1 loss.
If you are looking for a system that will allow you to trade for 15 minutes every day on the beach while sipping a mocha and make huge returns - then this is not for you.
With that being said, welcome to Breaking Through the Limbic System the Day Before .
Initial setup
1. Load the chart of the currency you want to trade
2. If using TradingView, add the following indicators:
2a. Use loop lines to separate dates - This is especially true for me, the trading day starts at 10pm (GMT)
2b. Search for the previous day’s high and low indicators (there are many different ones available on the platform)
2c. Simple Moving Average (SMA) for filtering, set to 34 - optional
3. Now you are ready!
Strategy
1. You are looking for a long position that breaks and closes at the previous day's high or a short position that breaks and closes at the previous day's low.
1a. If filtering using SMA, you will be looking for prices above the long price if the price breaks and closes above the previous day's high and of course vice versa.
2. Once a breakout is formed, you will need to add a position at the opening price of the next 1H candle.
3. Stop Loss should be 12.5 pips and Take Profit should be 25 pips, at which point the R:R ratio is 2.
4. Repeat whenever you have the chance, and if you feel positive, you can also adjust your position according to your aggressiveness.
Now..you may have some questions about its effectiveness or frequency of winning.
Before you do this, take a moment to analyze where the advantages are, the clues are written in the paragraphs above, traders who understand statistics and probability will relate to this strategy, no matter how simple it sounds.
Note: I have attached the EUR/USD chart on the 1 hour time frame to give viewers a visual representation of the strategy, in this case we have 2 wins and 1 loss.
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