Triangle Breakouts Forex Trading System For MT4

Triangle  Breakouts Forex Trading  System For MT4

Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.

 

The Triangle Breakouts Forex Trading System For MT4 automatically detects the formation of the triangle pattern and identities the potential trading zone.

This trading system uses the Triangle Breakout indicator that plots auto-trendlines to spot the triangle patterns. Also, it includes a built-in support and resistance indicator which helps the traders in projecting the potential profit target zone. You may use the support and resistance line to determine the exit point for each trade.

Triangle Breakouts Forex Trading System for MT4 can be used to trade all forex currency pairs, stocks, futures, metals, oils, and cryptocurrencies. But to get reduce the stress in the pattern identification process, you should be using these patterns in a higher time frame.

You may start using this system in the demo platform since you can learn the basic functions of the indicators without risking any real money.

If you’re familiar with the pin bar and inside bar trading strategies, you should be using this pattern to take the trades after the breakout take place. By using the price action confirmation signal, you should be able to trade the market with tight SL.

Let's find out more about this trading strategy and learn the key steps.


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Overview of The Triangle Breakouts Forex Trading System For MT4


    • Triangle Breakout Indicator: It plots auto-trendline and identifies the potential triangle patterns. After spotting the pattern, you should be waiting for the breakout. If the price breaks above the triangle resistance, you should be looking to execute the long trade. On the contrary, if the price breaks below the support level of the triangle pattern you should be taking the short trade. At the initial stage, you might have some trouble in determining the profitable trade signals but you can learn things in the demo environment. And try to use the candlestick patterns during the trade execution process to improving the trade timing.


    • Support and Resistance Indicator: This indicator plots horizontal support and resistance levels. With the help of the support and resistance line, you should be able to determine the profit target. Try to maintain a 1:2 risk to reward ratio while setting up the stop loss and take profit. If the risk to reward ratio is less than that, you should be ignoring the trade signals. Focus on the higher time frame data while using this indicator.

 

Example of Long Trade Setup Using The Triangle Breakouts Forex Trading System For MT4


Figure: Long trade setup in the USDJPY pair based on the bullish breakout

 

After the formation of the triangle pattern, we should be waiting for the bullish breakout. As the bullish breakout takes place, we should take the long trade. If the break is associated with a big bullish candle, we should act fast, or else it will be tough to manage the risk factor. To determine the take profit, you may use the height of the triangle pattern as a reference profit target. For instance, if the height is 30 pips, you may use 30 pips as TP. 

While taking the trade, you should be cautious about the risk exposure. If you increase the risk factor, you will suffer to survive in the long run. Usually, you should be risking 1-2% of your account balance or else it will be very challenging to protect your capital.

 

Example of Short Trade Setup Using The Triangle Breakouts Forex Trading System For MT4


Figure: Short trade setup in the EURUSD pair based on the bearish breakout

 

After the identification of the bearish breakout in the triangle pattern, we should be taking the short trade. If the breakout takes place with a strong bearish candle, we may wait for the minor retracement in the price. By doing so, we should be able to reduce the stop loss and get a better risk to reward ratio. If possible use the price action confirmation candlestick as it will improve the efficiency of the system.

The stop loss should be set above the broken support line. And the take profit level should be determined by analyzing the nearest support or the most recent swing low. Note that most of the breakout takes place in favor of the last prevailing trend. So, if you intend to trade against the previous trend, you should wait for the price action confirmation signals.

 

Summary:

By now you know the basic functionality of the Triangle Breakouts Forex Trading System For MT4. But having theoretical knowledge is not enough since trading in the real market is very stressful. That's why it is better to test this trading strategy in the demo environment.

Note that, no trading system in the world is perfect. You should be always prepared to accept few losing trades. To recover the losses, use strict risk management rules and trade with caution. And if you feel the system is a bit aggressive for your style, you may avoid using this strategy.

 

Download the complete system description and the files here:

FREE Triangle Breakouts Forex Trading System

Download the FREE Triangle Breakouts Forex Trading System for MT4.

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