Forex Breakout and Reversal Rules for NZD/USD and AUD/NZD

Summary

The document presents a four-hour forex system: a breakout approach for NZD/USD and a reversal variant for AUD/NZD, described as using the same code with long and short orders reversed. The sample rules combine the direction of recent daily closes, a five-bar high or low, candle direction and range, the close’s position within the candle, and a 100-period moving average as a trend filter.

Positions are closed after six bars or when a percentage profit target or loss stop is reached. The example specifies a 1.5% target and a 2.5% stop. These are proposed rules, not validated findings: no backtest, transaction-cost assumptions, parameter comparison, or performance statistics are supplied. The document explicitly asks for help finding better parameters, so the example should be treated as an unoptimized starting point.

Key ideas

• The NZD/USD example enters breakouts when daily closes, recent extremes, candle characteristics, and a moving average align.
• The rules use a 100-period moving average to filter long and short entries.
• Trades close after six bars or at the stated profit target or loss stop.
• The author proposes reversing order directions for the AUD/NZD reversal variant.
• No performance evidence or parameter optimization is included.

Tags

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