Before we get into my favorite forex breakout strategy, let’s first define the term, “breakout”. a breakout is any price movement outside a defined support or resistance area.the breakout can occur at a horizontal level or a diagonal level, depending on the price action pattern.. For such a breakout strategy, forex traders use the classical pivots or custom-made ones (camarilla pivots, etc.). however, trading a forex breakout is the same. the eurusd four-hour chart above shows the pivots indicator. a forex breakout trading analysis based on pivots shows the same levels on all time frames.. Forex breakout strategies are one of the basics that most of the traders uses. it literally means trading during breakouts. breakouts of what? well, there are so many breakouts that we can consider. some examples are trendline breakout, inside day breaks or moving average break. these are some of the breakouts that traders uses..
Having a breakout strategy using patterns is a great way to win in forex trading. then again, one cannot rely solely on them; learning the other trading fundamentals is as important too.. Forex strategies of breakout from support/resistance levels. the best breakout forex strategy is the one which is focusing on trading around key price levels. movement in strong price zone causes appearance of a large number of orders and makes an impulse to trade in certain direction.. Generally breakouts are used when the market is already near the extreme high or low of the recent past. when the market is trending and moving strongly in one direction, breakout trading ensures that you never miss the move. one breakout strategy is the european opening range..
