The 30 minute ATR Breakout Forex Trading Strategy is an advanced forex trading strategy and for new forex traders, it might take a while for you to understand.

Timeframes: 30 minutes

Currency Pairs that you can trade: any

Indicators Required: ATR14, EMA 14 set on ATR14, i-fractals (period 3, max bars 500) Download the i-fractals indicator here: i-FractalsEx.

You may also like to read this true story: How Fred Made 1 Million Dollars Trading Forex With 40 Trades using a Simple 5 Minute Breakout Trading System And Lost It All

THE BACKGROUND OF THIS FOREX TRADING STRATEGY

The concept of this trading method is really simple: only take a trade when the forex market is prepared to accelerate.

And if you’ve been trading forex for a while you will have noticed that the forex market slows down during some periods like the end of the day (end of new york trading session, through asian trading session) and then during the early morning session in London as well as New your session, the market accelerates.

So the purpose of the ATR indicator is to help you anticipate and prepare for the moment when the market is about to accelerate.

HOW TO SET THE EMA14 OVER ATR 14

1. Place ATR on your chart as usual.
2. then drag the the moving average onto ATR from the left hand side and in the settings box, put MA method=exponential and in the Apply to= Previous Indicator’s Data

TRADING RULES

• You only trade when the ATR indicator line is above 14EMA line-that’s when the market is active and that’s where you want to be trading
• When the ATR indicator line is below the 14 EAM, it means that there is less market movement and you really don’t want to be trading during that time.
• The Purpose of the fractal indicator is just to give you the highs and lows where you can take breakout trades from.

BUYING RULES

1. see if ATR indicator is above the 14 ema
2. check the i-fractals indicator and see the high marked by a red arrow and place a pending buy stop order 1-2 pips above that high.
3. place you stop loss at least 2-5 pips below the low of the breakout candlestick. The breakout candlestick is the candlestick that activated your buy stop order. Or you can place it on the opposite side of the breakout range.
4. You profit target should be set at the level where its 2 or 3 times what you risked for that trade.

 

SELLING RULES

1. see if ATR indicator is above the 14 ema
2. check the i-fractals indicator and see the low marked by a blue arrow and place a pending sell stop order 1-2 pips below that low.
3. place you stop loss at least 2-5 pips above the high of the breakout candlestick. The breakout candlestick is the candlestick that activated your sell stop order.  Or you can place it on the opposite side of the breakout range.
4. You profit target should be set at the level where its 2 or 3 times what you risked for that trade.

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