Sunday Break Trading Method
nice one. But how do you know which brokers show the sunday candle?
bossxero:
Hi All The method we will be learning about is another breakout method which needs the sunday candle(20.00 GMT) to be present on your charts. Not all brokers show this sunday candle at the open of the markets, therefore you should make sure that your broker is showing this sunday candle. If your broker does not show the sunday candle then you will not be able to use this trading method. If you have not chosen a broker yet, you can try the IBFX demo as they always has this sunday candle on their charts and the demo accounts never expires unlike other brokers. We are going to work with the GBPUSD pair as it is a trendy pair and the moves are quite powerful whichever the direction it takes. The timeframe we will be using is the H4 timeframe. We cannot use any lower timeframe for the trading method being described here. First of all, you will need to setup your chart and place the required indicator on it. We are not going to use many indicators and the only indicator which we will be using is the ATR with a setting of 14. However, we will need to read the ATR on the weekly chart and not the H4 chart which we are currently using. So, you have two options.. You can either place the ATR(14) on the weekly chart or place the Custom ATR indicator attached at the bottom of this post to the H4 chart itself and it will display the ATR of the Weekly on the H4 charts. The second method is more appropriate as you will not have to switch between timeframes for the analysis. If you choose the first method, you just have to place the standard ATR indicator on the weekly chart of the pair we are working on. If you choose the second method, then you need to download the indicator at the bottom, place it in you metatrader/experts/indicator folder.. then place this custom indicator on the H4 chart itself and it will display the ATR of the weekly on the same chart. If you don't know how to install custom indicators, there is a good thread explaining it in the forum itself. Step 1: Find the Sunday Candle (20:00 GMT) on your chart After our charts are ready and setup, we will need to look for the Sunday 20:00 GMT candle on the chart. Remember that we are using the H4 timeframe, so we need to look for the Sunday 20:00 GMT candle on the H4 timeframe as when we find it, we need to place 2 lines. First line should be 10 pips above the High of that candle and the other line should be 10 pips below the Low of the candle. Step 2: Entries, Stoploss and Takeprofit We will be opening a long position if the price breaks the upper line which we drew earlier and we will go short is the price breaks the lower line which we drew earlier. You can wait for the price to break these lines to open your orders, or if you are busy, then you can place 2 pending orders at these lines which should get triggered as soon as price crosses them.. As for the stoploss, for the long position, the stoploss will be the LOW of the H4 (20:00GMT) candle and for the short position, the stoploss will the HIGH of the H4 (20:00 GMT) candle. These are fixed stoplosses and they are there to protect your account from heavy damage in case the market moves against you. You can set a trailing stop of 75-90 pips which will trigger as soon as your order has that much pips in profit. However, you are free to try any time of order management which you prefer such as trailing by support and resistance, using fibo levels etc For the takeprofit, this is where the ATR indicator becomes handy. Our takeprofit formula is very easy to calculate as it is half(1/2) of the Weekly ATR(14). You just take the ATR value and divide it in 2... this will be your takeprofit in pips. Screenshot This is a very interesting and easy method. I hope that you will be enjoying it and bringing some improvement as well. Good luck and have fun.
Hi All The method we will be learning about is another breakout method which needs the sunday candle(20.00 GMT) to be present on your charts. Not all brokers show this sunday candle at the open of the markets, therefore you should make sure that your broker is showing this sunday candle. If your broker does not show the sunday candle then you will not be able to use this trading method. If you have not chosen a broker yet, you can try the IBFX demo as they always has this sunday candle on their charts and the demo accounts never expires unlike other brokers. We are going to work with the GBPUSD pair as it is a trendy pair and the moves are quite powerful whichever the direction it takes. The timeframe we will be using is the H4 timeframe. We cannot use any lower timeframe for the trading method being described here. First of all, you will need to setup your chart and place the required indicator on it. We are not going to use many indicators and the only indicator which we will be using is the ATR with a setting of 14. However, we will need to read the ATR on the weekly chart and not the H4 chart which we are currently using. So, you have two options.. You can either place the ATR(14) on the weekly chart or place the Custom ATR indicator attached at the bottom of this post to the H4 chart itself and it will display the ATR of the Weekly on the H4 charts. The second method is more appropriate as you will not have to switch between timeframes for the analysis. If you choose the first method, you just have to place the standard ATR indicator on the weekly chart of the pair we are working on. If you choose the second method, then you need to download the indicator at the bottom, place it in you metatrader/experts/indicator folder.. then place this custom indicator on the H4 chart itself and it will display the ATR of the weekly on the same chart. If you don't know how to install custom indicators, there is a good thread explaining it in the forum itself. Step 1: Find the Sunday Candle (20:00 GMT) on your chart After our charts are ready and setup, we will need to look for the Sunday 20:00 GMT candle on the chart. Remember that we are using the H4 timeframe, so we need to look for the Sunday 20:00 GMT candle on the H4 timeframe as when we find it, we need to place 2 lines. First line should be 10 pips above the High of that candle and the other line should be 10 pips below the Low of the candle. Step 2: Entries, Stoploss and Takeprofit We will be opening a long position if the price breaks the upper line which we drew earlier and we will go short is the price breaks the lower line which we drew earlier. You can wait for the price to break these lines to open your orders, or if you are busy, then you can place 2 pending orders at these lines which should get triggered as soon as price crosses them.. As for the stoploss, for the long position, the stoploss will be the LOW of the H4 (20:00GMT) candle and for the short position, the stoploss will the HIGH of the H4 (20:00 GMT) candle. These are fixed stoplosses and they are there to protect your account from heavy damage in case the market moves against you. You can set a trailing stop of 75-90 pips which will trigger as soon as your order has that much pips in profit. However, you are free to try any time of order management which you prefer such as trailing by support and resistance, using fibo levels etc For the takeprofit, this is where the ATR indicator becomes handy. Our takeprofit formula is very easy to calculate as it is half(1/2) of the Weekly ATR(14). You just take the ATR value and divide it in 2... this will be your takeprofit in pips. Screenshot This is a very interesting and easy method. I hope that you will be enjoying it and bringing some improvement as well. Good luck and have fun.
hi hady here,
my broker is United Market Oracle. doesnt have Sunday charts. Which brokers has it?
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Hi All
The method we will be learning about is another breakout method which needs the sunday candle(20.00 GMT) to be present on your charts. Not all brokers show this sunday candle at the open of the markets, therefore you should make sure that your broker is showing this sunday candle. If your broker does not show the sunday candle then you will not be able to use this trading method. If you have not chosen a broker yet, you can try the IBFX demo as they always has this sunday candle on their charts and the demo accounts never expires unlike other brokers.
We are going to work with the GBPUSD pair as it is a trendy pair and the moves are quite powerful whichever the direction it takes. The timeframe we will be using is the H4 timeframe. We cannot use any lower timeframe for the trading method being described here.
First of all, you will need to setup your chart and place the required indicator on it. We are not going to use many indicators and the only indicator which we will be using is the ATR with a setting of 14. However, we will need to read the ATR on the weekly chart and not the H4 chart which we are currently using. So, you have two options.. You can either place the ATR(14) on the weekly chart or place the Custom ATR indicator attached at the bottom of this post to the H4 chart itself and it will display the ATR of the Weekly on the H4 charts. The second method is more appropriate as you will not have to switch between timeframes for the analysis.
If you choose the first method, you just have to place the standard ATR indicator on the weekly chart of the pair we are working on. If you choose the second method, then you need to download the indicator at the bottom, place it in you metatrader/experts/indicator folder.. then place this custom indicator on the H4 chart itself and it will display the ATR of the weekly on the same chart. If you don't know how to install custom indicators, there is a good thread explaining it in the forum itself.
Step 1: Find the Sunday Candle (20:00 GMT) on your chart
After our charts are ready and setup, we will need to look for the Sunday 20:00 GMT candle on the chart. Remember that we are using the H4 timeframe, so we need to look for the Sunday 20:00 GMT candle on the H4 timeframe as when we find it, we need to place 2 lines. First line should be 10 pips above the High of that candle and the other line should be 10 pips below the Low of the candle.
Step 2: Entries, Stoploss and Takeprofit
We will be opening a long position if the price breaks the upper line which we drew earlier and we will go short is the price breaks the lower line which we drew earlier. You can wait for the price to break these lines to open your orders, or if you are busy, then you can place 2 pending orders at these lines which should get triggered as soon as price crosses them..
As for the stoploss, for the long position, the stoploss will be the LOW of the H4 (20:00GMT) candle and for the short position, the stoploss will the HIGH of the H4 (20:00 GMT) candle. These are fixed stoplosses and they are there to protect your account from heavy damage in case the market moves against you. You can set a trailing stop of 75-90 pips which will trigger as soon as your order has that much pips in profit. However, you are free to try any time of order management which you prefer such as trailing by support and resistance, using fibo levels etc
For the takeprofit, this is where the ATR indicator becomes handy. Our takeprofit formula is very easy to calculate as it is half(1/2) of the Weekly ATR(14). You just take the ATR value and divide it in 2... this will be your takeprofit in pips.
Screenshot
This is a very interesting and easy method. I hope that you will be enjoying it and bringing some improvement as well. Good luck and have fun.