4H Breakout

This is the 4H breakout strategy, by far my favorite strategy which is very successful and has made me countless pips.

So when looking at the above screen shot of my MT4 you can see the strategy is very simple. It starts every Sunday night at 00:00 or the beginning of the week. If you are using Metatrader 4 you can just click Ctrl – Y and it will set up lines for you at the beginning of every week.

You then draw lines or a box like in my screen shot the size of the first candle of the week. This will make the low of that candle your sign to sell and the high of that candle your signal to buy.

If you are using MT4 then you can use the Monday Breakout Indicator I posted which I found online.

You can also download it at the bottom of this page.

Very important I recommend adding a 5 to 10 pip buffer in the high and low so that you can prevent getting hit by a bad signal, since I have seen it happen before when the price just goes 1 or 2 pips below the low or high and a trade is started just to get hit with a stop loss when it goes the other way. Normally after 5 to 10 pips the price is going to keep moving in that direction.

This strategy works or should work on all JPY pairs but I have only tried it one four of them : USD/JPY, GBP/JPY, EUR/JPY, CHF/JPY

The rules of this strategy for stop loss and take profit are:

-Two pending orders one in each direction

-Add a buffer of 10 to 20 pips to the buy and sell lines

-Stop Loss is the size of the box.

-Take profit at TP1 then move stop loss to break even and ride it out to TP3

I will keep posting my weekly trades on this strategy.

Here is the indicator I use.

MondayH4Box

Here is a quick video on the 4H Break Out Method