The 32 Points Strategy: Simple EUR/USD Breakout

The “32 Points” Strategy: Simple EUR/USD Breakout

The “32 Points” strategy is a time-based breakout system specifically tailored for the EUR/USD currency pair. It aims to capture the market momentum generated during the London Open by identifying a specific price range and targeting a fixed profit, leveraging the concept of volatility breakout.

1. Strategy Setup

This strategy relies on identifying the high and low of a specific time window prior to the main market session. The breakout from this defined range signals the potential direction of the day’s trend.

2. Long Entry (Buy) Rules

Place a Buy Stop pending order to catch the upward momentum:

• Entry: Place Buy Stop 5 points above the High of the reference range.
• Target: Fixed Take Profit of 32 points.
• Stop Loss: Placed at the Low of the range or a fixed distance (e.g., 20 points).

3. Short Entry (Sell) Rules

Place a Sell Stop pending order to catch the downward momentum:

• Entry: Place Sell Stop 5 points below the Low of the reference range.
• Target: Fixed Take Profit of 32 points.
• Stop Loss: Placed at the High of the range or a fixed distance.