# 22# Asian Breakout II Trading System

Submit by Joy22

Time Frame H1.

Currency Pairs JPY

Locate four hourly candles from 00:00 to 03:00

Check this sample below:

Find the highest high and lowest low of these candles.

Here is a sample:

Build two parallel horizontal lines through those extremes

like it is shown on the chart below. In this example the highest

high is 135.80 and the lowest low is 135.46. As you can see these

lines are forming a tunnel. Both sides of it will be our breakout

point.

Here is a sample:

The idea of the system is – trading a valid breakout of

one of the lines (high or low). Enter with a buy order as soon as

the price breaks out 3 pips above the break point.

In this case enter with a buy order at 135.80 + 3 = 135.83

See example for high breakout:

Incase the low breakout occurs, enter with a sell order

as soon as the price drops 3 pips lower than the lowest low.

In the example below the lowest low is 135.72,

So enter with a sell order at 135.72 – 3 = 135.69

Here is a sample:

Stop loss: there are two options for the stop loss order:

a) Place the stop loss on the other side of the 00:00-03:00

candle tunnel.

See sample for stop loss incase of a low breakout below:

See sample for stop loss incase of a high breakout

Take profit: there are two options for taking the profit:

reaches 20 pips, or use trailing stop.

Share your opinion, can help everyone to understand the forex strategy.