Are you new to trading? Don't worry: we're dedicated toward providing the most high-quality, easy-to-understand, and straight-to-the-point investing education to the TradingView community. This strategy lesson is beginner-friendly (we have pictures!), as we've inserted helpful links into each and every term, just in case you don't know them yet. Anyways, let's get right into the steps of this effective trading method, which we've named "The Breakthrough Strategy":
• STEP 1, The Breakthrough:
Identify a breakout (or "breakthrough") at the most recent Support/Resistance (S&R) zone. With the horizontal line tool, if you haven't already, mark the level at which price broke: this will be your potential Entry Point (EP).
• STEP 2, The Turnaround:
Immediately following the breakout, you'll wanna see two or more consecutive candlesticks, going in the same direction of the breakout. After the streak, when you spot the first completely-formed candle, going in the opposite direction, you've found your "turnaround" point! Mark it up with a S&R line: this will be your potential Take Profit (TP) level.
• STEP 3, The Other Side:
Now, identify the most recent S&R zone, on the opposite side of the breakout zone: this will be your potential Stop Loss (SL) level.
• STEP 4, The Average:
Make sure that you have your Exponential Moving Average ( , 50) installed on TradingView. Is the end of it between the EP and the SL? Perfect! You're ready for the next step.
• STEP 5, The Order:
Place a Limit Order (TP, SL, and EP levels are mentioned in the previous steps). If, before price hits the Entry Point, things start to get choppy, close the pending order: it is now invalid.
• STEP 6, The Execution:
Did price hit your Entry Point? The order has been triggered—we're in! Good job, good luck, and hope for some profits.
• STEP 7, The Final Step:
"Practice makes perfect," so make sure that you backtest this method, to test it out before using it on the live market. Be sure to follow us, for future lessons which will help you significantly increase the power of this strategy!
We hoped that this helped you! We ask that you pay it forward, and share this lesson with a friend, a fellow trader, or... heck... share it with your grandmother.
“My mission is to help you see forex for what it is: it’s not ‘rocket science,’ but a simple strategy game. Get on the ‘good side’ of probability, develop the proper mindset, and you will prosper.”
— Nio Pomilia, Forex Free Press