The strategy focuses on the 4-hour (4H) and 1-hour (1H) timeframes. The price direction in both timeframes should align, meaning they should be moving in the same direction.
MA 200 Exponential: Use the 200-period Exponential Moving Average (EMA) on both the 4H and 1H charts. The MA 200 acts as a trend filter and helps identify the overall direction of the market.
Breakout Setup (BOS): Look for a Breakout Setup, which typically occurs when price breaks out of a range or a significant level of support or resistance. This breakout should happen in the direction indicated by the alignment of price in the 4H and 1H timeframes.
Entry: Once the BOS occurs, open a trade in the direction of the breakout. If price breaks out to the upside, consider opening a long (buy) position. If price breaks out to the downside, consider opening a short (sell) position.
Risk Management: Implement proper risk management techniques, including setting appropriate stop-loss levels to limit potential losses if the trade goes against you. Consider factors such as recent market volatility, support and resistance levels, and your risk tolerance when determining your stop-loss level.
Trade Management: Monitor the trade and consider trailing your stop-loss to lock in profits as the trade moves in your favor. Additionally, you can use technical analysis tools, such as trendlines, candlestick patterns, or other indicators, to identify potential exit signals.
MA 200 Exponential: Use the 200-period Exponential Moving Average (EMA) on both the 4H and 1H charts. The MA 200 acts as a trend filter and helps identify the overall direction of the market.
Breakout Setup (BOS): Look for a Breakout Setup, which typically occurs when price breaks out of a range or a significant level of support or resistance. This breakout should happen in the direction indicated by the alignment of price in the 4H and 1H timeframes.
Entry: Once the BOS occurs, open a trade in the direction of the breakout. If price breaks out to the upside, consider opening a long (buy) position. If price breaks out to the downside, consider opening a short (sell) position.
Risk Management: Implement proper risk management techniques, including setting appropriate stop-loss levels to limit potential losses if the trade goes against you. Consider factors such as recent market volatility, support and resistance levels, and your risk tolerance when determining your stop-loss level.
Trade Management: Monitor the trade and consider trailing your stop-loss to lock in profits as the trade moves in your favor. Additionally, you can use technical analysis tools, such as trendlines, candlestick patterns, or other indicators, to identify potential exit signals.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.