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Strategy Noise Breakdown EURUSD is a scalping trading strategy created to work with the EURUSD currency pair on the M5 timeframe.
Trades in this trading system are executed by pending multidirectional orders. The idea of the Noise Breakdown strategy is based on the search for an insignificant flat period, after which an impulse movement arises. With the help of pending orders, when the following conditions are met, trap orders are set that will catch this movement.
The strategy is implemented using two technical indicators: Damiani_Volatmeter and the classic Momentum indicator . You can download both of these indicators in the Indicators section.
Indicator settings
The Damiani Volatmeter indicator is set with parameters 8 for Viscosity, 52 for Sedimentation, and 1.1 for the Threshold_level parameter.
The Momentum indicator is set with a value of 14 for the Period parameter. Apply to Close. Using a horizontal line, mark level 100 in the window of this indicator.
Terms of placing multidirectional BUY-Stop and SELL-Stop orders
When these conditions are met, pending orders are placed at a distance of 100 points from the maximum and 100 points from the minimum of this period. A Buy Stop order is placed above 100 points from the maximum of the period. A Sell Stop order is placed at a distance of 100 points below the minimum of this period.
After one of these orders triggers, the second order should be deleted by placing a stop-loss in its place. Thus, you limit the possible loss. This system uses a trailing stop to take a profit. Set a trailing stop at 50 points.
Thus, a breakdown scalper system is created here, which, using two indicators, more accurately determines one-way impulse movement.
Conclusion
Strategy Noise Breakdown is a dynamic system. At the same time, you always have enough time to evaluate the signal and decide on a deal. Adhering to the clear rules of risk control and money management, you can successfully use this strategy in your trading.
