73# Envelopes Breakout Strategy

Submit by Corneliusson

Envelopes Breakout Strategy is trading system based on envelope that are dynamic support and resistance built on moving average. There are more ways for to use this tool: breakout of the central line, grid dynamic trend-reversal, reversal trading. I show here the breakout of the central line that is suitable for day trading and for swing trading. I have added a trend filter to decrease false signals.

Time frame 5 or higher.

Currency pairs majors and minor.

Metatrader indicators setting

Envelopes, exponential, close ( 89, 3, 0.21),

Envelopes, exponential, close ( 89, 3, 0.34),

Envelopes, exponential, close ( 89, 3, 0.55),

Envelopes, exponential, close ( 89, 3, 0.89),

Envelopes, exponential, close ( 89, 3, 1,44),

Moving average 89, median (HL/2),

Trend indicator,

Gann 4 time frame adaptive smoother default).

Trading rules Envelopes Breakout Strategy

Buy

The price break upward and close above the white central line.

Trend 3 indicator green bar.

Gann 4 time frame adaptive smoother 3 green square.

Initial stop loss depends by time frame.

Make profit 2 pips before the yellow line or fast profit target that depends by time frame and pairs ( example 5 min time frame 7-12 pips).

Sell

The price break upward and close above the white central line.

Trend 3 indicator red bar.

Gann 4 time frame adaptive smoother 3 green square.

Initial stop loss depends by time frame.

Make profit 2 pips before the yellow line or fast profit target that depends by time frame and pairs ( example 5 min time frame 7-12 pips).

In the pictures Envelopes Breakout Strategy in action.

Other Setting M 15

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