51# 5min Breakout Trading System

Bands Breakout

5 min Breakout Trading System update 20245 min Breakout Trading System update 2024

The "5-Minute Breakout" strategy relies on Bollinger Bands with a filter provided by moving averages. It exclusively focuses on breakouts aligned with the prevailing trend. 

 

 5min Breakout Trading System
5min Breakout Trading System

Setup Strategy

Timeframe: 5 minutes or higher.

Pairs: EUR/USD, GBP/USD, AUD/USD, EURJPY, AUDJPY, NZDUSD, GBPJPY. For timeframes higher than 5 minutes, major and minor FX pairs are suitable.

Forex Indicators

Simple Moving Average (SMA) 10 periods, based on closing prices.

Simple Moving Average (SMA) 50 periods, based on closing prices.

Bollinger Bands (20.2).

Parabolic SAR (0.03, 0.2).

RSI (14) (Buy signal at level 60, Sell signal at level 40) - optional.

Long Entry

Buy when the closing price breaks above the upper Bollinger Band.

Confirm with the condition where the 10-period SMA is above the 50-period SMA.

Optionally, RSI should be above 60.

Short Entry

Sell when the closing price breaks below the lower Bollinger Band.

Confirm with the condition where the 10-period SMA is below the 50-period SMA.

Optionally, RSI should be below 40.

Exit position

Aim for profit targets ranging between 5-15 pips for 5-minute timeframe, varying based on currency pairs.

Consider exiting when the Parabolic SAR changes direction (bottom for buy, top for sell) or at key support/resistance levels.

 

Set initial stop-loss orders below the previous swing low for buys and above the previous swing high for sells.

5 min Breakout Trading System
5 min Breakout Trading System
5 min Breakout Trading System
5 min Breakout Trading System
5 min Breakout Trading System
5 min Breakout Trading System
5 min Breakout Trading System
5 min Breakout Trading System

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Comments: 1
  • #1

    Otobong Udoh (Wednesday, 03 February 2021 00:04)

    Is it only that that 3 pairs it works for or all the currency