The 20 pips daily candlestick breakout forex trading strategy is a price action trading system where you only need to trade once a day using the daily candlestick and your profit target is set at 20 pips.

There’s also a forex trading system called the 30 pips a day forex trading strategy which you can check out after you’ve read this.

Also check out my Free Price Action Trading Course if you are interested in trading price action.

The idea behind this trading system is this: daily candlesticks can travel 100’s of pips daily so why not just catch just a tiny portion of this daily movement?

And to do this, just trade the breakout of the high or the low of the daily candlestick.

Currency Pairs: any

Timeframes: Daily

Forex Indicators: you do not need any

Before you get to the trading rules….

21 OTHER BREAKOUT FOREX STRATEGIES (YOU MAY ALSO BE INTERESTED IN)

20 PIPS DAILY CANDLESTICK BREAKOUT FOREX STRATEGY TRADING RULES

It is advised that you do not trade if the daily candlestick breakout happens during the Asian forex trading session. Why? Because, it usually has low trading volume and lack the the momentum required to accelerate price movement.

But if the daily candlestick breakout happens during the London forex session, there’s a great chance that whatever the breakout direction price makes will be the direction it will maintain for that day.

Buying Rules:

Place buy stop pending order 2-3 pips above the high of the daily candlestick.
Place your stop loss 20 pips
Place your take profit target 20 pips.
Repeat the process next day

Selling Rules:

place a pending sell stop order 2-3 pips below the low of the daily candlestick
place your stop loss 20 pips
place your take profit target 20 pips
repeat the process the next day.

HERE’S THE TRADE EXAMPLE:

ADVANTAGES OF THIS FOREX STRATEGY

this forex strategy would suit a housewife forex trader who stays at home and looks after children as it takes less time and less effort because its a set and forget trading system
or it can suit a trader that has a day job and has no time to watch the charts so before you go to work, just place your pending orders and go to work. Check the next day what happened…
many traders trade the breakouts of the highs and lows of daily candlesticks so if a high/low breakout happens, there’s likely chance of your profit target being hit easily because its just only 20 pips.

DISADVANTAGES OF THIS DAILY BREAKOUT FOREX TRADING STRATEGY

in a low volume/volatility period (mostly happens in asian trading session but sometimes can also happen in london and new your trading session), you may get a breakout that will trigger your pending order but then price heads the opposite way once that order is triggered and you will get stopped out.
1:1 risk reward. I really don’t like trading systems that give one to one risk to reward. This means that for every 100 dollars you risk trading, you win 100 dollars (if you win). But having said that, you may like it, that’s why I’ve shared this forex strategy with you here 🙂

“The four most dangerous words in investing are: ‘this time it’s different.'” – Sir John Templeton

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8 thoughts on “20 Pips Daily Candlestick Breakout Forex Strategy-A Solid Trading System To Have”

Chukwu November 15, 2016 at 23:43

Thank you, every trader should develop his/her strategy that works for him/her through the knowledge acquired here.
ALGY DAMIS DYAL September 12, 2016 at 14:30

I like the 20 PIPS DAILY CANDLESTICK BREAKOUT FOREX STRATEGY TRADING RULES – See more at: http://forextradingstrategies4u.com/20-pips-daily-candlestick-breakout-forex-strategy/#sthash.VMUrAlnM.D477lTPJ.dpuf… i want learn it
Bela August 2, 2016 at 13:33

There is a similar strategy with EA which is covering your strategy. Quantina Daily High Low EA
http://quantina-intelligence.com/forex/index.php?route=product/product&product_id=75

but what would be your suggestion when should I use it and when not? Thanks
1. RKay August 3, 2016 at 08:25
  
  Bela,
  
  if your question refers to the use of EA, sorry, I have absolutely zero clue.
  
  Cheers
  
  RKay
NBO June 20, 2016 at 03:35

HI
Thanks for the content
I was searching the net flat and finally came across your PA section
This was a blessing

My question:
There are so many PA strategies to choose from it is easy to get confused and overwhelmed as to which one to use.

Is there a sequence you go through to establish which one to use?
God and Jesus bless you

NBO
1. RKay June 20, 2016 at 08:16
  
  Hi NBO,
  
  I know there are a lot of Price Action strategies here.
  There’s no definite answer I can give you on what type of systems for you to use but you need to find out what kind of personality you have as a trader and this can involve things like:
  * do you like to trade reversals or not
  *do you like trend/swing trading systems?
  *what timeframes do you like to trade it?
  
  these are few of the questions you need to ask yourself and find a system that fits your personality.
  
  This is not a concrete answer but I hope you understand what I’m saying here.
  
  Thanks for visiting forextradingstrategies4u.com
Zemin Liu April 20, 2016 at 03:11

thanks Rkay,I study too much on your web,god bless you!
1. RKay April 20, 2016 at 08:32
  
  Thanks for visiting Zemin,
  
  many profitable pips to you.
  
  Cheers
  
  RKay

Comments are closed.