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Daily Range Breakout

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Scalperology Ai MT5
Global
Pairs: AUD/JPY
AUD/JPY
AUD/USD
EUR/AUD
EUR/GBP
EUR/JPY
EUR/NZD
EUR/USD
GBP/USD
NZD/USD
USD/CAD
USD/CHF
USD/JPY
XAU/USD
XAG/USD
XBT/USD
30-Day Profit: 37.81%
7-Day Profit: 20.41%
Support: 24х7 via Telegram
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Breakopedia Ai MT5
Global
Pairs: AUD/JPY
AUD/JPY
AUD/USD
EUR/AUD
EUR/GBP
EUR/JPY
EUR/NZD
EUR/USD
GBP/USD
NZD/USD
USD/CAD
USD/CHF
USD/JPY
XAU/USD
XAG/USD
XBT/USD
30-Day Profit: 25.75%
7-Day Profit: 15.64%
Support: Developer
Free 🎁

Understanding the Daily Range Breakout

  • The Daily Range Breakout is a trading strategy that capitalizes on price movements beyond predetermined support and resistance levels established within a specific daily trading range.
  • This method sets up potential trades at the start of each trading day, specifically targeting major currency pairs such as EUR/USD.
  • The strategy hinges on identifying high and low price points during a defined period, commonly from 00:00 to 12:00 GMT.

    • How to Identify the Daily Range

  • First, define the trading period (e.g., 00:00 to 12:00 GMT).
  • Then, record the highest high and lowest low prices within this timeframe.
  • These two points will serve as the breakout boundaries: the high indicates a buy signal while the low indicates a sell signal.

    • Execution of Trades

  • Position pending buy orders just above the high and sell orders just below the low.
  • When the current price breaches the high, a buy order is triggered; conversely, a breach below the low triggers a sell order. 🚀
  • This strategy assumes that once a breakout occurs, momentum will carry the price in that direction.

    • Managing Trades

  • Use stop-loss orders to limit potential losses and establish take-profit levels based on the price range captured.
  • Many traders employ trailing stops to secure profits as price moves favorably.
  • For example, a stop-loss of 20 pips and a take-profit of 40 pips can be typical configurations.

    • Expert Advisors for Daily Range Breakout

  • There are several Expert Advisors (EAs) available that automate the Daily Range Breakout strategy, such as the Range Breakout Pro, which captures large price movements while minimizing risk.
  • EAs can be programmed to operate under user-defined parameters, significantly reducing the need for constant monitoring of market conditions.
  • For instance, one EA can automatically record price ranges and execute trades based on identified breakouts with adjustment options for stop-loss and take-profit levels.

    • Advantages of Daily Range Breakout Strategy

  • This technique allows traders to capitalize on volatility, especially during high-liquidity periods such as the London or New York sessions.
  • The method does not rely on risky techniques like martingale but rather focuses on proven breakout points.
  • Traders can benefit from significant risk management features offered by various EAs designed for this strategy. 😎

    • Common Indicators Used

  • Indicators like the Average Daily Range (ADR) help gauge volatility and the likelihood of a successful breakout.
  • Further, visual indicators can illustrate established trading ranges, assisting traders in making informed decisions based on real-time data.
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