The 20 pips daily candlestick breakout forex trading strategy is a price action trading system where you only need to trade once a day using the daily candlestick and your profit target is set at 20 pips. There’s also a forex trading system called the 30 pips a day forex trading strategy which you can check out after you’ve read blogger.comted Reading Time: 2 mins 10/30/ · How to trade the 20 pips strategy. Below is a step by step process to trade this strategy. Open the candlestick chart of any currency pair, preferably, a major or minor currency pair. Firstly, go to the 1-hour timeframe in the chart and see if the market is in a The chart below shows an example of a sell trade setup based on the 20 pips a day forex trading strategy. The trading rules are the same as given above but for this case, notice that the low of the daily candlestick was broken so the pending sell stop order would have been blogger.comted Reading Time: 3 mins
Heard Of The Amazing ’20 Pips Per Day’ Strategy? | Forex Academy
Forex is the most liquid and volatile market in the world. The average pip movement in the major currency pairs is around pips. However, as a retail trader, it is not impractical to grab pips every single day.
Though there are some strategies out there, it is very challenging to make pips per day every day. But, there is 20 pips strategy, 30 pips strategy as well as 50 pips strategy, which is much reliable than the pips strategy.
So, in this lesson, we shall be discussing the 20 pips strategy. The strategy is very simple and straightforward. According to this strategy, when the price breaks above a range in a 20 pips in forex chart area, you must go longand when it breaks below a range in a logical area, you must go short.
So, this strategy is basically a breakout strategy. There are some criteria one must consider before trading this strategy. You can trade this strategy on any currency pair, 20 pips in forex chart. However, it is recommended to focus mainly on major and minor currency pairs. Though the market is open 24 hours, it does not mean you can apply this strategy any time during the day.
To keep it safe, it is advised to trade only during the times when there is high liquidity. That is, the London — New York overlap would be the best time to apply this strategy.
Else, the London session or the New York session will work perfectly fine as well. Timeframe plays an important role when it comes to trading a strategy of this type. To make 20 pips a day, it is ideal to stay between the 1hour timeframe and the minute timeframe.
This strategy does not require any technical indicators. Below is the chart of AUDUSD on the 1-hour timeframe. We can see that the market has been bouncing off from the purple line, 20 pips in forex chart.
So, this becomes a logical area to buy. At present, the market is holding at the purple support line. And it was in a tiny range for like ten candles. Now, to apply the strategy, we need the market to break above this range. In the below image, we can see that the market breaks above the range with a big green candle. But, before hitting the buy, we must switch to the lower timeframe and see if the momentum of the candle that broke the range was strong or not.
In the below 15 min chart, 20 pips in forex chart can clearly see that the broke above the range in just two green candles. This is an indication that the buyers have come up strong. Hence, now we can prepare to go long. Coming to the take profit and stop loss, the take profit would, of course, 20 pips in forex chart, be 20 pips, and the stop loss can be kept a few pips below 20 pips in forex chart support area. Alternatively, you can even go for a RR by keeping a stop loss of pips.
Note that this strategy can be applied when the market is in a trending state as well. The market keeps making lower lows and lower highs. At present, it can be seen that the market is pulling back, and a green candle has appeared. Now, all we need is the price to break below the pullback to give us a heads up that the downtrend is still active. In the below chart, we can see that, in the very next candle, the market broke below the pullback area. Hence, we can prepare to go short after getting confirmation of the strength from the lower timeframe.
In the below minute timeframe chart, we can see that the momentum of the candle was sufficiently robust during the breakout. Hence, we can consider shorting in now. As far as the take profit and stop loss are concerned, it remains the same as the previous example.
That is, 20 pips take profit with 20 pips stop loss. A great feature to consider about this strategy is that it can be used in any state of the market. However, all the criteria mentioned above must be met for the strategy to work. And if you have experience in trading, you can try enhancing the strategy by applying some indicators and patterns. There are times when this strategy fails, as well.
Hence, it is recommended to use this strategy in conjunction with other strategies to have a better winning probability.
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20 PIPS a Day Forex Strategy
, time: 7:3020 Pips Daily Candlestick Breakout Forex Strategy
The chart below shows an example of a sell trade setup based on the 20 pips a day forex trading strategy. The trading rules are the same as given above but for this case, notice that the low of the daily candlestick was broken so the pending sell stop order would have been blogger.comted Reading Time: 3 mins The 20 pips daily candlestick breakout forex trading strategy is a price action trading system where you only need to trade once a day using the daily candlestick and your profit target is set at 20 pips. There’s also a forex trading system called the 30 pips a day forex trading strategy which you can check out after you’ve read blogger.comted Reading Time: 2 mins 10/30/ · How to trade the 20 pips strategy. Below is a step by step process to trade this strategy. Open the candlestick chart of any currency pair, preferably, a major or minor currency pair. Firstly, go to the 1-hour timeframe in the chart and see if the market is in a
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