Trend Breakout Strategy

To enter a short trade using the trend breakout strategy, you would follow these steps:

1. Setup your chart:

– Open a chart on MetaTrader 4 platform.
– Select the M30 time frame.
– Add the 9 EMA and 20 EMA to the chart.

2. Identify an upward trending currency pair:

– Look for a currency pair that is trending upward, with higher highs.
– In this example, we will continue using EUR/USD.

3. Draw a trend line:

– Draw a lower trend line to connect the lows of the upward trend.

4. Entry:

– Wait for a candle to close below both the 9 EMA and 20 EMA after the trend line break.
– Enter a SELL trade at the close of this candle.

5. Set a stop loss:

– Place a stop loss above both the 9 EMA and 20 EMA.

6. Set a take profit target:

– Aim for a 2:1 risk-to-reward ratio.
– For example, if the stop loss is set at 20 pips, set a take profit target at 40 pips.
– Take profit when the price levels out and continues to touch the top 20 EMA.

Remember, it is crucial to practice this strategy on a demo account and adapt it to your own trading preferences. Additionally, consider market news and avoid trading during volatile news releases.