Forex short-term trading system “Guppy with Triangle Breakout”
This original system is designed to work on five-minute charts, although it can also be used on higher timeframes. Any currency pairs – basic and cross – are suitable for trading. It is preferable to trade in the European and American session. The main idea of the system is to break through the boundaries of the triangle. A triangle is a figure formed on a chart by price movement.
The amplitude of the price movement gradually decreases and the price breaks through one side of the triangle. The indicator “Cynthia’s_Triangle_Breakout” is used in this system, which automatically draws the actual triangle on the chart. The “Guppy Multiple Moving Averages” indicator is used to determine the direction. It is a set of 11 moving averages, painted in different colors for clarity. You can use them all or part of them
Full set of “Guppy Multiple Moving Averages”. The MACD oscillator with standard settings (12,26,9) is used to confirm the signal.
To open a position, we first define the trend. If the green lines of the “Guppy Multiple Moving Averages” indicator have risen above the red lines, and the MACD bars have become above the 0 level, you can buy. We buy only after the upper line of the triangle is broken through. The stop is set 1 point below the nearest minimum. Take Profit is set at 30-50% of the average daily movement of the currency pair.
Similarly, green lines should be lower than red lines and MACD should be lower than 0. A sell position opens when the lower triangle line is broken through. We put the stop above the local maximum, and take profit in the same size. Average Daily Traffic (ATR) is easy to determine.
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