Daily Range Breakout

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Scalperology Ai MT5

Global

Pairs:

AUD/JPY

AUD/USD

EUR/AUD

EUR/GBP

EUR/JPY

EUR/NZD

EUR/USD

GBP/USD

NZD/USD

USD/CAD

USD/CHF

USD/JPY

30-Day Profit: 32.78%

7-Day Profit: 26.73%

Support: 24х7 via Telegram

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Breakopedia Ai MT5

Global

Pairs:

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: 27.97%

7-Day Profit: 21.39%

Support: Developer

Free EA🚀

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.