The Asian Breakout trading strategy is designed to capitalize on the increased volatility that often follows the Asian session when the European markets open. The strategy uses a "Box Breakout" approach to identify price consolidation during the Asian session and trade the subsequent breakout.

Box Formation: 23:00 to 03:00 GMT (Berlin Time).

Active Trading: From 03:00 GMT until 13:00 GMT or when the breakout fades.

Indicators MT5

Breakout Box MT5.

SMA 50, period close.

Damiani Volameter (7,34, 1.1).

Instruments:

• Major forex pairs (e.g., EUR/USD, GBP/USD, USD/JPY).

Steps:

1. Identify the Box:

   • Use a 15-minute or 30-minute chart.

   • Draw a box around the highest high and lowest low between 23:00 and 03:00 GMT.(manually) or with breakout Box Indicator

2. Set Breakout Levels:

   • Upper Breakout Level: The highest price in the box.

   • Lower Breakout Level: The lowest price in the box.

3. Entry Rules:

   • Place a buy stop order slightly above the upper breakout level, or at the close of the candle of breakout.

4. Stop Loss:

   • For long trades: Set the stop loss below the lower boundary of the box.

   • For short trades: Set the stop loss above the upper boundary of the box.

5. Take Profit:

   • Use a risk-reward ratio of 1:1.3 or 1:8 depends by volatility.

   • Alternatively, close trades at a key support/resistance level.

6. Filter the Trades:

   • Use a trend filter (e.g., a 50-period moving average) to confirm direction:

     • Take only long trades if the price is above the moving average.

     • Take only short trades if the price is below the moving average.

7. Time-based Exit:

   • If the trade has not hit the stop loss or take profit by 13:00 GMT, close the position manually.

Example:

EUR/USD:

1. Between 23:00 and 03:00 GMT, the highest price was 1.2050, and the lowest price was 1.2020.

2. Place a buy stop order at 1.2053 and a sell stop order at 1.2017.

3. Set stop loss:

   • For the long trade: 1.2017.

   • For the short trade: 1.2053.

4. Target:

   • Risk 10 pips to aim for 20-30 pips (1:2 or 1:3).

Tips for Optimization:

• Avoid trading during low volatility periods (e.g., holidays or major central bank announcements).

• Use an economic calendar to be aware of upcoming news that could influence the breakout.

• Adjust the box size if the range is unusually tight (less than 15 pips) or too wide (more than 50 pips).

MT5 Strategies

MT5 Indicators

MT5 Directory

Submit by Forexstrategiesresources

Time Frame :15 Min or higher (recommended H1) 

Pair: all.

Metatrader Indicators: 

Golden Finger; 

Golden super K; 

Golden Tendency; 

FDM Support or resistance; 

MF Breakdown Flat; 

Golden Variety; 

FDM Oscillator; 

FDM Multitrend.

Exit position: 

Stop Loss: 3 pips below or above breakdown flat (support/resistance); 

Take Profit 5 pips before FDM support or resistance; 

Trailing Stop.

Share your opinion, can help everyone to understand the forex strategy.