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Breakout-55 – Strategy that use of just the 45 period EMA and no other indicators. It works
on the concept of break out and is very simple. However, only experienced traders are better
suited to trade this strategy as break outs can often result in a fake out with price reversing
back to its previous trend. This strategy works on both H4 and daily time frames and therefore
it is not an intraday strategy.
Strategy Set Up
• 55 EMA (Close)
Strategy Examples
Short Set up
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• Price breaks below the 55 EMA
• After two bearish candles, a sell order is placed with a 80 pips in take profit and stops
placed just above the 55 EMA
• Trade results in a profit
Long Set up
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Conclusion
The 55EMA breakout strategy is one of the simplest break out trading strategy that works
best on H4 or daily charts. However, despite the simplicity, this strategy requires quite some
experience in knowing how to identify a break out from a fake out.
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