Why Most Breakout Strategies Fail
42sHigh educational value with a bold claim that this is the only tested strategy that works, sparking curiosity.
▶ Play Clip"The title promises a reliable strategy and the video delivers a detailed, tested approach with examples, though it includes a giveaway plug and some repetition."
This video presents a one-minute scalping strategy based on the Opening Range Breakout (ORB) concept, enhanced with an Exponential Moving Average (EMA) filter and specific entry patterns. The creator demonstrates a three-step process—trend, level, and entry—with live chart examples and emphasizes the importance of trading in line with the dominant order flow.
The strategy was tested 100 times across different market conditions, sessions, and volatility levels. Most breakout strategies fail when volatility changes, but this one has withstood all tests.
Most 1-minute traders miss opportunities because they don't liquidate bad trades and have low success rates. The creator executed four scalping trades on the same pair with less than one hour of trading volume per day.
Only one indicator is used: the 100-period Exponential Moving Average (EMA). It displays the average price over the last 100 periods. Buy opportunities are only considered when the price is above this level, and sell opportunities when below.
At 1:00 AM Eastern Time, the first five-minute candle is observed. After it closes, its high and low form the trading range for the day. The price must break this range with a clear close to signal a breakout.
Using the Fibonacci tool, draw from the bottom to the top of the range. The target move is approximately 70% of the range. Adjust settings by entering the value minus 0.7.
The breakout movement creates a demand zone (one red candle followed by four consecutive green candles) and a fair value gap. These levels serve as potential entry points after a pullback.
After a pullback to the levels, a bullish or bearish engulfing pattern confirms the entry. The trade is entered when the engulfing candle closes, with a target at the identified profit-taking level.
The example shows a risk-to-reward ratio of 2.32. A trailing stop loss could be used to capture more profits in a steady trend.
The creator reviews nine examples demonstrating the strategy in both buy and sell scenarios, highlighting the importance of waiting for a strong surge and a clear breakout.
The strategy combines ORB, EMA filter, and specific entry patterns to trade in line with the dominant order flow. It requires patience and discipline, and the creator offers additional support through a VIP trading room and a trading robot.
What is the only indicator used in this strategy?
A 100-period Exponential Moving Average (EMA).
00:59
How is the opening range defined?
The high and low of the first five-minute candle at 1:00 AM Eastern Time.
02:09
What is the target move percentage using Fibonacci?
Approximately 70% of the range.
02:37
What pattern indicates a demand zone?
One red candle followed by four consecutive green candles.
04:02
What entry confirmation is used after a pullback?
A bullish or bearish engulfing pattern.
05:22
Tested Strategy
The strategy was tested 100 times across various conditions, proving its reliability.
00:03EMA Filter
Using a 100-period EMA helps align trades with the dominant trend, reducing losses.
00:59Fibonacci Target
Setting a 70% target provides a clear profit-taking level based on range measurement.
02:37Engulfing Pattern
The bullish/bearish engulfing pattern serves as a reliable entry confirmation.
05:22Risk-to-Reward
The example shows a risk-to-reward ratio of 2.32, demonstrating favorable trade setup.
07:16[00:03] trading a 1-minute breakout strategy, I test it 100 times across different market conditions, multiple trading sessions, and varying levels of volatility. Most breakout strategies fail as soon as the volatility level changes, but this
[00:16] [music] Scanning strategy is the only 1-minute breakout strategy that has withstood all those tests. Today, I'll explain a simple three-step process: trend, level, and entry. Of course, I don't make any promises or guarantees regarding future trading results,
[00:30] but if you find this content helpful, please like, subscribe, and see the disclaimer. Let's start with the first step: trend. This is precisely where most 1-minute timeframe traders make a mistake and miss out on
[00:44] weeks like this one, where I executed four scalping trades on the same pair with a trading volume of less than one hour per day. I often see traders who don't even liquidate a single bad trade and end up with a very low success rate. But I can add an indicator There's only one, the
[00:59] EMI (Exponential Moving Average), to minimize unnecessary losses. All I do is set the settings to a 100-period timeframe. This blue line then displays the average price over the last 100 Fridays. Based on this, I only look for buy opportunities when the opening range is broken and the
[01:12] price is above this level, and for sell opportunities when the price is below this level. This way, I stay aligned with the only look for buy opportunities when buyers are in control and only look for sell opportunities when
[01:26] sellers are in control. When we see the price surge and break through, as happened here, a trader might try to enter a sell position at this level to make some points, but the market often moves against them quickly, and the trade fails as the price breaks
[01:40] upwards. However, when the EMI indicator is activated, we see that the price was above this level. Therefore, I was only looking for buy opportunities like this, targeting this level above and letting the trade run. I always try to trade in line with the dominant order flow. Now, before
[01:55] we move on to the second step, I'm giving away five free opportunities to join the trading room. For the exclusive VIP option, simply write a random comment below for a chance to win. The second step involves levels. Even with the correct direction identified, unexpected trades can occur
[02:09] if the entry point is unsuitable. Therefore, I use a breakout from the opening range to help determine the market direction. At 1:00 AM Eastern Time, I observe the first five- Eastern Time, I observe the first five- minute candle. Once it closes, I identify the high and low of that
[02:21] candle. This forms my trading range for the day. Next, I switch to the one-minute timeframe and wait for the price to break this level, either from below or above, with a clear close indicating a breakout.
[02:37] If I use the Fibonacci tool, I draw from the bottom of the range to the top. Here, I usually look for a move of approximately 70% of this range. This represents 100%, and the target move is around 70% or more. To adjust the Fibonacci settings
[02:53] for this purpose, all you need to do is enter the value minus 0.7. Now, let's move on to the topic of levels, as this movement creates our demand zone, which is the first level, and may also create... The fair value gap is the second level. After that, simply wait for a
[03:08] correction. Will the price return to this level and then continue rising to enter a trade, or will it break through that continue rising to enter a trade, or will it break through that level and retreat until it reaches the demand zone? If the price maintains its position within the fair value gap, I can consider entering.
[03:22] If it maintains its position within the demand zone, I can also consider entering a buy trade from that level after receiving a confirmation signal, which I will explain in the video. Then, target the take-profit level. Let me illustrate this on the live chart. As you can see here,
[03:35] we have several breakout attempts, but these breakouts were not strong. This was a weak break here, and another weak break here as well, without a clear surge in movement. Then we get the
[03:47] third break, and if we measure this movement, we notice that it reached about 70%. We have a candle close, and the price is now above the EMA. Now we have the levels. The demand zone has been formed here, which is the red candle that preceded the strong
[04:02] upward surge. To form a demand level, we need one red candle followed by four. A consecutive green candle, and directly below that, we have a fair value gap. Therefore, we see fair value gap. Therefore, we see these two levels converging at this stage. As you know,
[04:15] I just wait for a pullback to those levels, then wait for a confirmation signal to enter, which appeared right here. At that point, I can set up my trading page like this. Then,
[04:27] look at this level here; it seems to be a suitable target for the move, and the price appears to be holding steady at this level. So, I continue the trade according to this scenario. As you can see, the price moved well at this level, and I might consider taking some profits because this was a
[04:40] and I might consider taking some profits because this was a strong supply level. But let's continue the movement. We notice that the price continues to rise until it reaches the specified target and the profit-taking level for this trade. All the conditions were met, but I haven't yet addressed one of the most important parts,
[04:53] which is the third step: entry. This is where the importance of patience becomes clear. Now, at 1:30 AM Eastern Time, the first candle appeared, so I identified the peak and the trough, and this became my trading range for the day. After that, I wait for the
[05:08] price to break the range, either from below or, as in this case, from... The price rises with a strong upward movement, then corrects back towards the level I identified. As you can see, we have two candles forming the identified. As you can see, we have two candles forming the pattern I'm looking for. There's a red candle here followed by a
[05:22] green engulfing candle. This pattern is known as the bullish engulfing pattern. This pattern is known as the bullish engulfing pattern. presence of momentum in the market in the direction I'm following. I then enter the trade when that candle closes, looking something like this, and continue
[05:37] following. I then enter the trade when that candle closes, looking something like this, and continue identified profit-taking level. Now let's return to the live markets. As you can see, a to the live markets. As you can see, a trading range is being formed. We've seen a break of the range from above and
[05:51] trading range is being formed. We've seen a break of the range from above and another break from below, We have the EMA (Exponential Moving Average) here, so we're looking for buying opportunities. Another move has appeared, but it also lacks a clear surge. We're looking for a strong surge with a close
[06:08] outside the range, like this example. This, in turn, establishes our levels. We have the demand level and also the overlapping fair value gap here, which forms a here, which forms a three-candle pattern.
[06:26] previous one, creating a There's a market imbalance at this level, which is why I like to use this site as an entry point—a level for entering a trade. After that, I simply wait for the price to correct. Initially, the correction hasn't happened yet. We observe several attempts to
[06:41] touch this level, and at this point, the price begins to correct. However, it then price begins to correct. However, it then
[07:04] below the breakout of the opening range. Then, I zoom in on the chart to find the target level for the trade. I can target reaching the highest level here, which is a relatively strong and ambitious target.
[07:16] Personally, I would target something closer to this level because we've seen a lot of consolidation and strength around this area. Therefore, I expect the price to reach this level. This would give me a risk-to-reward ratio of around 2.32. I think I'm...
[07:30] I'll tighten the stop loss a bit, like this. Now that I have all the entry confirmations, I can enter the trade and monitor the price movement. Indeed, the price reached the specified take-profit level and even went much higher. Perhaps this was because the price was in a steady upward
[07:45] trend. Here, it would have been possible to use a trailing stop loss to achieve more profits from stop loss to achieve more profits from this trade. To clarify this further, I will review nine quick examples.
[08:03] correct and stabilized at our level. A bullish engulfing pattern appeared, then the price moved upwards and reached the take-profit level. The same thing happened here above the EMI. The price stabilized within the fair value gap, a bullish engulfing pattern appeared, and the price moved upwards and reached the take-
[08:18] profit level. After that, we have a sell opportunity when the opening range was broken from below, and the price quickly reached the take-profit level. Here is another sell trade below the EMI with the fair value gap and the appearance of a bearish engulfing pattern. I entered the trade, and the price quickly reached the target. Note that there were
[08:32] some small attempts. The breakout from above was strong, but it didn't involve a real surge. So we waited for a big breakout from below with a clear surge. The price reached below the EMI, touched the fair value gap, then fully reversed downwards, justifying the profit-taking. Here's
[08:47] another beautiful, almost perfect example. Then another sell trade when the bearish engulfing pattern appeared. Here, we can conclude with a sell after I've presented all the buy examples, and the price reached the exact profit-taking level at this excellent offer level.
[09:05] this one-minute scalping strategy helps you in your trading. If you're looking for more support, you can consider joining the VIP trading room or using the trading robot that executes this strategy fully automatically.
[09:18] Definitely watch this video here, and I'll be back Definitely watch this video here, and I'll be back next week. All my love, H
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