Trade GBP/JPY with 1 Bar Breakout in 4 Hour Chart

January 13, 2010

Found another breakout system that based on one bar in a 4 hour chart.  The author uses this method to trade GBP/JPY.  Looks like the result is not bad at all.

So basically, in a 4 hour chart:

  • Take the high and low of the second bar of the day. (GMT)
  • Calculate number of pips between the high and the low.  (High - Low = Channel; e.g. 160.00 - 158.50 = 1.50 –> 150 pips)
  • If channel is more than 200 pips, no trade for the day.
  • If channel is less than 200 pips, place buy 10 pips above the high & sell 10 pips below the low.
  • Take Profit = buy order + channel (e.g. Buy @ 160.10, channel = 150 pips, Take Profit = 160.10 + 1.5 = 161.60)
  • Stop Loss = buy order - channel (e.g. Buy @ 160.10, channel = 150 pips, Stop Loss = 160.10 - 1.5 = 158.60  )

Read more about this strategy @ forexfactory

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One Response to “Trade GBP/JPY with 1 Bar Breakout in 4 Hour Chart”

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