Introduction to the Strategy
This lesson assumes that you understand your financial goals and are familiar with all the risks and opportunities online trading provides. You can schedule a free call with our expert trader that will help you find the best way to achieve your financial goals.
The ten bar breakout strategy is designed for longer term trading for those that do not have enough time to watch a price chart all day. Someone using this strategy can look at the chart once a day to decide if they need to manage their position or not.
This strategy can be used on a number of different assets. We have tested this on a number of currency pairs.
However, please note that this strategy is a learning tool that you can use to learn longer term trading. You should also start off using a demo account and if you decide to use this strategy on a live account, you do so at your own risk.
The strategy in a nutshell
The ten bar breakout strategy is a trend following trading strategy. You wait for the price to break above the high, or below the low, of the last ten candles that appear on your chart. You then move your stop loss in the direction of your trade as it develops and you take your profit when the price reverses and triggers your stop loss.
As with most strategies, you need to decide which direction you will trade in and to do that, you use a simple moving average. We show you how to use this in the following lessons.
How to trade the strategy is explained in a step-by-step way in the following lessons:
- Trading with the ten bar breakout trading strategy
- Managing the pending order
- Managing the trade
- Setting up your chart for the ten bar breakout trading strategy
To set up your chart, simply add an 89 period simple moving average.
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