The New York Breakout Forex Trading Strategy is a trading system which you can use to trade New York-US Forex Trading Session.
After London, the New York Forex Session is the second largest trading session in the currency market which operates 24hrs.
This is a simple breakout trading strategy where you wait for the breakout of a support to sell and breakout of a resistance level to buy.
Currency Pairs To Trade: EURUSD, GBPUSD, USDCHF, USDJPY
Timeframes required: 15minutes
Forex Indicators: none
Here are the trading rules…
- Open up a 15 minute Chart for a Major currency pair like GBPUSD or EURUSD.
- Then draw a vertical line at 7am EST on your Chart.
- Next, also draw another vertical line at 9am EST on your Chart.
- Then draw a Horizontal line at the high of candles/bars in between the vertical line.
- And similarly to step 4, also Draw a Horizontal line at the Low of candles/bars in between the vertical
- Next thing you do is to Place a buy stop pending order just 1 or 2 pips above the high point and also place a sell stop pending order below the low point.
- Place you stop loss on opposite ends, that is, your stop loss for the buy stop pending order will be placed on the price level where you placed the sell stop pending order and similarly but opposite for the sell stop pending order.
- Wait for a breakout to happen and when it happens, you need to cancel the other pending order that has not been activated.
- Aim for 50 to 60 pips profit targets.
- Keep in mind that there are only 9 candlesticks/bars in the 15 minute chart, between 7am-9am.
- If you see that the price does not break the high/low, then consider it a ranging market.
Therefore, you have to Cancel all your pending orders. You wait to trade at the same time on the next day.
- Keep in mind also that USD news releases usually happen around or after the 7am to 9am phase so be aware of them or go over to forexfactory and find out what dates and times major news releases are coming out.
- This is a daily trading system which means that the trading signals you get can only be valid for that day.
FX Box Strategy (London and New York Breakout Session Strategy)
Next day, you repeat the process and wait for the 7am to 9am candlesticks.
- If you live in a GMT timezone, this will help: 7am EST = 12pm GMT and 9am EST = 2pm GMT
ADVANTAGES OF THE NEW YORK BREAKOUT FOREX TRADING STRATEGY
- this trading strategy Stops you from over trading because you only have one trading setup to watch for the day so at the most, you’d have 5 trading signals in a week.
- this forex trading strategy is also suitable for traders that have day jobs, you can wake up in the morning, place a trade and go to work and come back and check in the evening (depends on which time zone you are on)
- The forex market trend that begins in UK generally tends to continue into the New York US trading session.
- If the Distance between the high and low is less than 50-60 pips, it could be very profitable.
- This is just price action trading at its simplest form.
DISADVANTAGES OF THE NEW YOUR BREAKOUT FOREX TRADING STRATEGY
As usual, all forex trading strategies have their disadvantages:
- If you see that the distance between the high and low is more than 50-60 pips, it may not be profitable simply because price has moved a lot already and may not have the necessary momentum to keep going.
- In such a case, it is best not to trade but If you do decide to take a trade, then aim for 20-30 pips profit target instead of a 50 pips profit target.
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