Trick Breakout Strategy on EURUSD

A market in which a pair of currencies move approaching new lows, can serve as opportunities for traders to trade on a breakout the next. In Forex trading, there are many different ways to approach a market like that. Below, we can see a great example, using the chart EURUSD daily.

In the following chart, looks clearly that market trends are moving down, and continue to fall to a lower point for two months, until eventually decline as many as 867 pips since February yesterday. For market conditions like these, one chance we can achieve, namely by implementing a strategy, known as the breakout strategy.



Breakout trading
Let's look back the chart EURUSD above, the condition of the strong downtrend on the chart have been identified, by this time also, the trader can begin planning a breakout trading, namely trading over the lowest position in the chart.

Well, first of all, we start by identifying low beforehand, i.e. at points around the range 1.2845. The low point of this is what is called the price floor, or point support which supports the movement of a currency pair. Keep in mind, in the breakout strategy, new market entry can be done, when the price moves below the low points we already identify. And after that, a new trader can do action, in hopes of selling, the price of EURUSD will continue to move down to a lower point again.

One of the easiest methods in trading a breakout is a method known as, entry order. Entry of this order is a great way to breakout trading, since you can select the appropriate prices, with who you want, at the time of entry into the market.

When pricing options you want available in such trading, then the order can be quickly executed. This can be a great benefit to traders who can not monitor the trading screen for 24 hours. In fact, if You're in a position of not being able to access any data online, but if you want pricing options available, then your transaction will be directly executed.


Setting Stop Loss
as with any trading plan in General, breakout traders also need to limit risks in the same way, namely by setting the point of stop orders. There are many ways to put a stop point, but one of the easiest ways is to set a stop order along the lowest high point in the chart.

A limit order can always be arranged by using the ratio of reward risk. Because, the duration trend alone could not have been predicted, traders can put the setting ratio in comparison with risk: reward is 1:2. It can be found by extrapolating the number of pips at stake after setting the stop order is applied.