EUR/USD Breakout Entries Using a Two-Times ATR Candle Filter

Summary

This intraday EUR/USD strategy looks for an unusually large one-hour candle, defined by an open-to-close move greater than twice the 12-period average true range. It enters long when that candle closes above its open and short when it closes below its open, treating the candle direction as a breakout signal. The rules specify one contract per trade, a 40-pip stop, a 120-pip target, and trading only between the stated morning and evening cutoffs.

The document describes the target-to-stop relationship as three to one, but provides no backtest, trade sample, or live results to support its effectiveness claim. It does not explain how the ATR is calculated from the candle body versus the full high-low range, how simultaneous signals are handled, or whether the stated spread and order fills were incorporated into testing. These omissions limit what can be concluded about profitability or robustness across market conditions.

Key ideas

• The strategy checks one-hour EUR/USD candles against twice the 12-period average true range.
• A qualifying bullish candle triggers a long entry, while a bearish candle triggers a short entry.
• Each trade uses a 40-pip stop and a 120-pip profit target.
• The stated trading window runs from 08:00 to 21:00.
• The document supplies rules but no test results establishing performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.