Breakout is an example of a Forex strategy for beginners that is not particularly demanding in terms of time - but that can be a problem for investors who have no patience and focus too much on real results, rather than focusing on the end result long-term.

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Step 1 - Configure the Forex Strategy[/h]

The conditions must be precise - that is why a breakout trader must already know exactly what he is looking for. This will allow you to analyze charts quickly and focus only on the opportunities you find. The first strategy that we present to you aims to identify a trend that can be formed, and looks for price breakouts.

Markets oscillate most of the time between regions of support and resistance, this is known as consolidation. This is an essential condition for this trading strategy, the market needs to be in consolidation - in a relatively narrow area, volatility is relatively low and prices are horizontal, so buyers and sellers are more or less equal in terms of control from the market.

There are many ways to distinguish a consolidating market, but a Forex strategy for beginners uses a Simple Moving Average of 200 periods on a daily chart.

Why 200? Because it's the number of days traded in a year, then you're basically looking at an annual average. Thus, depending on the market and the average daily volatility, an MMS of 200 creates a price range - let's assume 50 pips.

If the price goes above or below that price range, it will be a sign of a breakout.

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2nd Step - Entering a Position with your Forex and CFD Strategy[/h]

The entry rules for this trading strategy are simple. Whenever the Japanese candle closes on one side of the MMS 200, it must go in the direction of candlestick and movement.

Step 3 - Exit Position in Forex Breakout Strategy[/h]

The conditions for leaving the position are just as important as the conditions for entry. This is true for all Forex strategies that exist, be they simple or complex.

In the worst case, the price on the MMS 200 means it was a fake breakout. In this case, neither the buyers nor the sellers decide to enter the position.

Your stop loss remains 50 to 60 pips below the entry point. If hit, you will lose that value in pips. However, in case of a good position, the MMS break will develop in a trend in which you can follow a good distance of 50 to 60 pips behind the price.

Finally, you will move away from the MMS 200 in a profit zone and stop only when the price is correct to achieve your Trailing Loss.

The strengths of this safe forex strategy are:

* A logical application;
* Easy to apply;
* Easy to manage;

If you learn well, you will only need to check your charts only once a day. The weakness of this system is a false breakout that can occur before observing the expected forex signal as well as the appearance of directional movements.

When testing and looking back through the backtesting, you will notice that false signals often appear before the good ones, but that, thanks to the exit rules, you will be able to make long-term profits.

This debate is common among existing forex strategies. By making the entry rules simple and clear, you will reduce your hesitation and the number of positions, although it can improve your success rate.

Likewise, by making exit rules simple and clear, you will reduce your losses, but you will also deprive yourself of often profitable positions that can occur.