The STAR:fx system uses a break out method to detect an intraday trend and exploits the structure of volatility to enable the trader to follow the short-term trend until its exhaustion.
The breakout method was chosen because it is superior to other trend following techniques and has a well documented history of success as a trading methodology – most notably in the Turtle Trading experiment conducted by R. Dennis and W. Eckhardt in 1983 to determine whether good traders were born or made. The experiment showed that with a simple set of trading rules, people with little or no trading experience could be taught to be good traders.
The price breakout is one of the most fundamental concepts in trading: It occurs when price moves out of a consolidation or trading range (a period of relatively narrow, sideways price movement) or moves decisively above or below an established price level (support or resistance), initiating either temporary follow–through or a sustained trend.
Click HERE to watch a short video which may help you better identify the "set up" for a breakout by monitoring horizontal price levels of support and resistance and, perhaps most importantly, it advises you not to trade against the trend.
The video presenter prefers to operate on a 1 hour chart and expects to achive many hundreds of pips profit on a breakout trade by holding a positions overnight. This is a leap for the novice trader but by practising your breakout trading on an intraday basis with the help of our signals, you are preparing for those bigger trades and growing your profits while you learn.
