As you probably know,round numbers are strong support and resistance areas. These pointsare very important in a chart because they may help us to identify astrong breakout or breakdown.
You can use this strategyin any timeframe and in any currency pair you prefer.
Rules Special BreakoutFor Trading :
In this strategy we willenter in breakouts or breakdowns, using round numbers. We will placea buy order on the breakout, for example, at 1.8801 or 1.9001. Wewill also set a 50 pips stop loss. In this strategy, the stop lossisn’t rigid; we will use a trailing stop loss. For example, if yourentry order is at 1.8801, your initial stop loss order will be at1.8750. When prices reach 1.8850, your stop loss will change to1.8800, and so on. We will place a short sell order on the breakdown,for example, at 1.7999 or 1.7599. In this case, we will also set a 50pips stop loss.
We will also use atrailing stop loss, like in the long side. If, for example, pricesreach 1.7950, your stop loss will change to 1.8000, and so on.
Entry: Buy GBP/USD at1.7401
Stop Loss: 1.7350
Exit: 1.7550
Profit: 149 pips
In this GBP/USD 1 hourchart, you can see that prices are approaching 1.7400. This price isa round number. So, we will place a buy order at 1.7401, in thebreakout of this round number. We will also set a stop loss order at1.7350. After entering the trade, the price continues to go up. So,when it reaches 1.7450, you will move your stop loss to the breakevenpoint, at 1.7400. The price continues to move up and when it touches1.7500, you will move your stop loss once again, this time to 1.7450.The price still continues to go up, and reaches 50 pips higher. It istime to change your stop to 1.7500. The currency pair reaches now1.7600 and your stop loss should go higher to 1.7550. At this point,the currency pair stopped its uptrend and you got out at 1.7550 –where your trailing stop loss was –, with 149 pips profit.
Entry: Buy GBP/USD at1.8001
Stop Loss: 1.7950
Exit: 1.8350
Profit: 349 pips
For this GBP/USD 1 hourchart, we will place a buy order at 1.8001. According to thisstrategy, we should also insert a stop loss order 50 pips below ourentry point, at 1.7950. After entering the trade, as the price ismoving up, we need to adjust our stop loss accordingly. When theprice touched 1.8400, we moved our stop loss to 1.8350, which waswhen we exited the position. In just 2 days, we made 349 pips profit!
Entry: Buy GBP/USD at1.7601
Stop Loss: 1.7550
Exit: 1.7850
Profit: 249 pips
You should insert a buyorder for GBP/USD at 1.7601, as well as the 50 pips stop loss (at1.7550).After entering the trade,prices retraced a bit. After this retracement, prices started to goup again.We need to keepmonitoring the trade so that we can move our stop loss when pricesreach 50 pips higher. When prices reached 1.7900, our stop loss wasimmediately changed to 1.7850. This was where we exited the trade,making 249 pips profit.
Entry: Buy GBP/USD at1.8701
Stop Loss: 1.8650
Exit: 1.8800
Profit: 99 pips
In this case, we shouldplace a buy order at 1.8701. We should also enter our initial stoploss order at 1.8650. As soon as prices start moving up, the stoploss is adjusted. When prices reach 1.8850, our stop loss is moved to1.8800. This was the price at which we exited the trade.
Entry: Short GBP/USD at1.7699
Stop Loss: 1.7750
Exit: 1.7500
Profit: 199 pips
In this GBP/USD 1 hourchart, we will enter a short sell order at 1.7699. We will also placea stop loss order 50 pips above our entry point, at 1.7750. Afterentering the trade, when prices reach 1.7650, the stop loss willchange to 1.7700, the breakeven point; when prices reach 1.7600, thestop loss will move to 1.7650; and so on. When prices reach 1.7450,our stop loss should be changedto 1.7500, which was theprice at which we exited the trade. This trade was closed with 199pips profit.
Entry: Short GBP/USD at1.7499
Stop Loss: 1.7550
Exit: 1.7400
Profit: 99 pips
In this case, we shouldplace a short sell order at 1.7499, as well as a stop loss at 1.7550.
When prices reach 1.7350,we should change our stop loss to 1.7400. We closed the trade at1.7400, with 99 pips profit.
Entry: Short GBP/USD at1.8999
Stop Loss: 1.9050
Exit: 1.8850
Profit: 149 pips
In this case, we shouldenter a short sell order at 1.8999 and an initial stop loss at1.9050. By following the trade closely, we keep adjusting the stoploss in order to minimize losses and maximize profits. This way, whenprices reach 1.8800, our stop loss will be at 1.8850. This is theprice where we got stopped out with 149 pips profit.
