Bearish weekly breakout strategy

 Bearish weekly breakout strategy is a breakout method that works most of the time.It is a stress-free strategy because it is a set-up that refreshes once a week.The set-up works on the low of a weekly candlestick.Hence, one needs to know how to identify the OHLC of a weekly candle in order to maximise this strategy.

In order to sell using this method,we have to identify the low of last week.We expect that the bearish momentum will be high once the price moves and breaks the weekly low of last week.So we will place an order to sell the currency pair at 5 pips below the low.

 

 We have just been able to establish an entry signal which is an essential part of the strategy.Now we need to state the suitable exit signals too.The stop loss for the system is 50 pips while the trailing stop is also 50 pips.The trailing stop is used instead of take profit so as to maximise profit.

This is designed to detect and ride the weekly bearish momentum.It is so simple that any disciplined trader will make a living from it. The favourite pairs for this method of trading are EURUSD, USDCAD, USDCHF, GBPUSD, USDJPY and AUDUSD. I so much like these pairs that I don`t think of any other pairs beside them.

The diagram above is a 4Hour EURUSD chart.The two white vertical lines above are called period separators and they contain thirty 4hour candles which make a whole week when summed together.Now, the yellow horizontal line indicates the weekly low which is enclosed by the yellow triangle.The next blue triangle shows where price eventually breaks the low.This is just the way the strategy works.You may please forward your email or leave comments. I am the author of this blog. I can write for you on your forex blog too for a token.