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The next illustration were going to look at involves a bearish breakout. We will also take a look at several examples on both the 4-hour chart as well as the daily chart. Because this is a short setup, our stop loss was placed above the breakout candle. After two unsuccessful attempts, the market finally breaks through support. This forms whats known as a wedge. This wedge pattern occurred on the gbpnzd 4-hour chart.
This particular breakout occurred on the usdjpy daily chart and represents whats possible with the Forex breakout strategy you learned today. This time, were looking at the daily time frame to see if we can identify a logical target for our breakout trade. Poll Results, profitable and easy system (multiple choice). In the usdjpy 4 hour chart above, we can see that the stop loss was 13 pips from the entry while the take profit was 50 pips from the entry. Just remember that like forex digital marketing any other trading strategy, this breakout strategy is not without flaw.
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