A system of 4 breakout candles on the H1 frame

This 4-candle breakout system is a very important addition to a 3-touch system, so if you have not read about a 3-touch system, you should read it.

3 touches are a great way to trigger entry, but what if you don't see any nice 3 touches on your H4? Then switch to H1 and take a look at this setup

The 4-candle breakout system on H1:

This is a setup according to Price Action and RSI on W1 does not need to follow the trend of the trade (H1). Because this is a "fast" trade, that means it lasts a lot of hours. You can wait for the trend on H1 to be favorable with H4 to enter the order to have a higher probability of winning, but that is not necessary.

B, You will need to observe the FRIENDS of the first 4 H1 candles from the market's opening time, regardless of the tail (shadow) of the candle. You need a session dividing line on the chart to know when the market is open.

C, Select the candle with the highest opening price, draw a horizontal line through this price. Similarly choose the candle with the lowest closing price, draw a horizontal line through that price. This is resistance and support

D, Wait for the breakout above/below the lower line, if it breaks according to the H4 trend, enter.

E, Enter above M15, when at least 1 candle has completely broken out of resistance / below support. The quality of the breaking candles must be taken into consideration.

Note: you can place an order a few hours after the 4th candle has closed. For example, my first 4 H1 candles are from 2 to 6 pm and I usually wait until 8-9 a good time to place orders. Still OK, spend some time observing price action, there's no rush.

Breakout 4 candle system - Example


Setup is drawn clearly, the price has broken up to the resistance of the first 4 candles, but not following the trend, so it should not BUY. When the price breakout down supports the trend-forward, we SELL. This order takes 80 pips.


Remember, the breakout direction must be in line with the mainstream in order to enter the order, not break any direction to trade that direction. UCHF markets continue to SELL when they breakout.

Below is the M15 chart of UCHF markets above:

Note that the price breaks the lower edge of the range completely than SELL, due to the advantage of low timeframes, there is no rush. NZDUSD:

Looks like this is a nice setup of mine, you will SELL. So SELL, because although the trend is still up, the bearish candles start to get longer, showing the momentum gradually turning down. You also have to know how to read candles, instead of just applying mechanically.


Wait for a candle to close completely below the bottom edge to SELL. However no, so no more SELL.