SNS_BREAKOUT_BOXES
Posted: Tue Nov 10, 2009 4:02 am
BREAKOUT BOXES INDICATOR
First, I want to make it abundantly clear right up front that I did not originate this trading strategy. Nor is all the code in this indicator entirely 100% uniquely mine.
I mentioned on the 2% chat last week that I had created this indicator and some people expressed intrest in getting it, so here it is (a week later than I originally promised). I first read about the strategy that gave birth to this indicator at Forex Factory in the thread:4H Breakout
This indicator was created to complement or assist with the "Asian Session BreakOut" strategy, which is also known by many other names or titles across the various Forex Forums.
It is essentially two indicators in one. First, it will highlight the high and low extremes of the Asian Session beginning with the Sydney open on Sunday Night (US Time) or whatever time/day you specify as the beginning of your Asian Session.
The weekly box remains highlighted for you all week.
Secondly, the indicator will draw another box for the Asian Session each day. This DAILY box redraws every day. Again, the start and end times for the daily session you want to ?box? is user definable.
Zoomed out view of the entire week of of October 26th through the 30th:
Here is a shot zoomed in on a DAY box:
You can optionally have it "color shade" the profit zones if you want:
And it has a simple gauge to remind you of the timer periods covered, and the range/size of each box:
THE TRADING SYSTEM (in a nutshell):
To summarize the trading strategy that is covered in MUCH more detail in the Forex facory thread mentioned above:
It has been noticed by some number crunchers (who spend way more time staring at charts than I do) that how the Asian Session goes on the first day of the week can actually be a pretty reliable indication of how a pair will trade for the remainder of the week. You simply wait for the price to ?break out? of one side of the box or the other and then you enter the market in that direction. If price breaks out below the low of the box, you enter SHORT, or if the price breaks out past the high of the box, you enter LONG.
Over time, this strategy has been (and continues to be) tweaked some here and there, and so there are no ?hard and fast rules?, only observations and suggestions really.
It should be noted here that this system seems to work ?best? or hold accurate the most often, with the JPY pairs. But keep in mind there are never any guarantees. In the screen shots that follow, I was using the indicator on the EURUSD pair.
Another key factor with this strategy is that it is a once or twice a week signal system . Generally, you set your ENTRY ORDERSc (not MARKET ORDERS) for going both LONG and SHORT along with the recommended STOP LOSS positions for each (explained more in the indicator manual and at the FF thread) once the Asian Session box is completed Monday morning and then you leave it alone the rest of the week.
[hr]
VERSION HISTORY
v1.1 - added ability for user to customize appearance of the info gauges (per request)
v1.2 - modified to use SNS_ObjectLibrary.mqh and adjusted DEFAULT end times
[hr]
First, I want to make it abundantly clear right up front that I did not originate this trading strategy. Nor is all the code in this indicator entirely 100% uniquely mine.
I mentioned on the 2% chat last week that I had created this indicator and some people expressed intrest in getting it, so here it is (a week later than I originally promised). I first read about the strategy that gave birth to this indicator at Forex Factory in the thread:4H Breakout
This indicator was created to complement or assist with the "Asian Session BreakOut" strategy, which is also known by many other names or titles across the various Forex Forums.
It is essentially two indicators in one. First, it will highlight the high and low extremes of the Asian Session beginning with the Sydney open on Sunday Night (US Time) or whatever time/day you specify as the beginning of your Asian Session.
The weekly box remains highlighted for you all week.
Secondly, the indicator will draw another box for the Asian Session each day. This DAILY box redraws every day. Again, the start and end times for the daily session you want to ?box? is user definable.
Zoomed out view of the entire week of of October 26th through the 30th:
Here is a shot zoomed in on a DAY box:
You can optionally have it "color shade" the profit zones if you want:
And it has a simple gauge to remind you of the timer periods covered, and the range/size of each box:
THE TRADING SYSTEM (in a nutshell):
To summarize the trading strategy that is covered in MUCH more detail in the Forex facory thread mentioned above:
It has been noticed by some number crunchers (who spend way more time staring at charts than I do) that how the Asian Session goes on the first day of the week can actually be a pretty reliable indication of how a pair will trade for the remainder of the week. You simply wait for the price to ?break out? of one side of the box or the other and then you enter the market in that direction. If price breaks out below the low of the box, you enter SHORT, or if the price breaks out past the high of the box, you enter LONG.
Over time, this strategy has been (and continues to be) tweaked some here and there, and so there are no ?hard and fast rules?, only observations and suggestions really.
It should be noted here that this system seems to work ?best? or hold accurate the most often, with the JPY pairs. But keep in mind there are never any guarantees. In the screen shots that follow, I was using the indicator on the EURUSD pair.
Another key factor with this strategy is that it is a once or twice a week signal system . Generally, you set your ENTRY ORDERSc (not MARKET ORDERS) for going both LONG and SHORT along with the recommended STOP LOSS positions for each (explained more in the indicator manual and at the FF thread) once the Asian Session box is completed Monday morning and then you leave it alone the rest of the week.
[hr]
VERSION HISTORY
v1.1 - added ability for user to customize appearance of the info gauges (per request)
v1.2 - modified to use SNS_ObjectLibrary.mqh and adjusted DEFAULT end times
[hr]