FALSEBREAK CANDLE TRADING STRATEGY

"Trading Strategy using Support and Resistance Levels plus a Falsebreak Candle as a trigger"


TRADING STRATEGY

Style: Day-Trading Strategy

Name: Falsebreak Candle Trading Strategy

FINANCIAL ASSETS

Forex Majors



TIMEFRAME

■ M5 timeframe (5-minutes)

■ 5-7 daily trades



INDICATORS & SETUP

This simple strategy uses no indicators instead it uses the close support and resistance levels and a falsebreak candle.

■ Support and Resistance form a basic demand and supply price range

■ A Falsebreak Candle provides the trigger to trade it



TRADING SIGNALS

This is how you may implement the Falsebreak Candle Strategy:

First of all we must define the range by determining major support and resistance levels.

■ (↑) Long Trades

1. Wait until the price of an asset reaches an important support level.

2. Wait until there is a candle with a shadow below the support level and a close above the support level. This is called a falsebreak candle.

3. As the falsebreak candle is confirmed open a Long Trade.

■ (↓) Short Trades

1. Wait until the price of an asset reaches an important resistance level.

2. Wait until there is a candle with a shadow above the main resistance level and a close below the resistance level. This is also a falsebreak candle.

3. As the falsebreak candle is confirmed open a Short Trade.



TRADING ORDERS

■ Take Profit: 200-250 pips

The Take-Profit depends on the extend of the range between support and resistance. Take-Profit is placed 5-10 pips below the resistance in case of a Long-Trade and 5-10 pips above the support in case of a Short-Trade.

■ Stop-Loss: 80 pips

The stop-loss is placed below a falsebreak in case of a Long-Trade or above the falsebreak in case of a Short-Trade

■ Profit/Loss Ratio: 2.5


CHART: Falsebreak Candle Strategy

Trading Strategy using Support and Resistance Levels plus a Falsebreak Candle as a trigger


HotForex Security

FIND ALSO: ► EA BUILDER TESTER | ► GET STARTED WITH FOREX | ► TRADE SYSTEMS

STRATEGIES: ► DAY-TRADE | ► SWING-TRADE | ► SCALPING STRATEGY | ► BINARY STRATEGIES

FOREX RATINGS: ► DIRECTORY | ► TRADE SPREADS | ► FOREX REBATES | ► FOREX SCALPING | ► SWAP RATES | ► FUNDS SAFETY

 

Falsebreak Candle Day-Trading Strategy

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