Weekly Breakout Trading System

Probably the first such system was the weekly rule devised by richard donchian.

Weekly breakout trading system. Trading breakouts is not a new concept. What is breakout trading of a swing high and swing low. As a rule in breakout trading the bigger the breakout candle the better. These trading rules are loosely based on the rules for donchian channels sometimes called price channels which comprise a breakout system developed by richard donchian in the 1950s.

39 breakout weekly strategy trading system. 3 day volume price. A breakout is the point at which the market price breaks away or moves out of a trading range. This makes our trading system very similar to day trading except the fact that our day lasts for the entire week.

Donchian was one of the early developers of trend following trading systems. Pivot points drawn weekly can be used for a very good swing trading strategy. Breakout trading is used by active investors to take a position within a trend s early stages. Generally speaking this strategy can be the starting point for major price moves expansions in.

In the figure above this can be noticed quite instantly. How to trade. Trend following is a well known concept underlying many successful trading systems. Test results for this system.

Traders have been using breakouts for centuriestoday many of the world s top traders trade breakouts for big pro ts. Submit by ozzy trader 26 01 2012. Weekly pivots with 50 sma. Indicators used in this system will be same as our pivot points intraday strategy.

So what actually is a breakout. 3 days delivery percentage. The candle closes well above the support resistance level.