{"id":11397,"date":"2022-02-10T19:03:20","date_gmt":"2022-02-10T16:03:20","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=11397"},"modified":"2026-05-26T10:55:50","modified_gmt":"2026-05-26T07:55:50","slug":"best-long-term-trading-strategies-daily-breakout-and-moving-average","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2022\/02\/10\/best-long-term-trading-strategies-daily-breakout-and-moving-average\/","title":{"rendered":"Best Long-Term Trading Strategies: \u201cDaily Breakout and Moving Average\u201d"},"content":{"rendered":"\n

Almost any trend strategy uses Moving Averages<\/a> as they help traders to quickly define the trend. However, the tactics named “Daily Breakout and Moving Average<\/a>” works differently.<\/p>\n\n\n\n

According to this strategy, a trader will trade against the direction of Moving Averages. In order<\/a> to do that, they will have to follow quite unusual rules of using Moving Averages.<\/p>\n\n\n\n

\"Moving<\/a>
Moving Average in the “Daily Breakout and Moving Average” strategy<\/em><\/figcaption><\/figure>\n\n\n\n

If Moving Averages show a bullish trend, then a trader should look for a signal to sell. If Moving averages show a bearish trend – vice versa, a trader should look for a signal to buy. It turns out to be some kind of a countertrend strategy.<\/p>\n\n\n\n

More to that, the ADX<\/a> indicator is usually added here to get a confirmation to enter the market. This combination of indicators<\/a> allows to “catch” the completion of the current tendency ahead of time.<\/p>\n\n\n\n

\"The<\/a>
The ADX<\/a> indicator in the “Daily Breakout and Moving Average” strategy<\/em><\/figcaption><\/figure>\n\n\n\n

Authors of the strategy believe that it can be used for working with any instrument but only on a daily timeframe<\/a>.<\/p>\n\n\n\n

The article goes into the details of the “Daily Breakout and Moving Average” strategy – we’ll discuss how to trade against the dominating tendency and try to “catch” a breakout using simple indicators<\/a>.<\/p>\n\n\n\n

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<\/span>How to customise indicators to trade by the strategy<\/span><\/h2>\n\n\n\n

To use the strategy, you need to apply three indicators to a daily time frame.<\/p>\n\n\n\n

1. Simple Moving Average (SMA) with a period of 20, building at the lowest prices and choosing Low. An arithmetical average that uses the lowest prices over the period instead of the closing prices.<\/p>\n\n\n\n

\"The<\/a>
The Simple Moving Average indicator<\/em><\/figcaption><\/figure>\n\n\n\n

2. Exponential Moving Average (EMA) with a period of 34. Exponential Moving Average differs from Simple Moving Average because it pays more attention to the latest data. This is the most popular Moving Average with traders.<\/p>\n\n\n\n

\"The<\/a>
The Exponential Moving Average indicator<\/em><\/figcaption><\/figure>\n\n\n\n

3. ADX with a period of 13. A faster period than a more frequently used period of 14. The signal formation requires a level of 25 on the indicator chart. You can delete extra lines in settings, leaving only the key line and the specified level.<\/p>\n\n\n\n

\"The<\/a>
The ADX indicator<\/em><\/figcaption><\/figure>\n\n\n\n
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<\/span>How to buy by “Daily Breakout and Moving Average”<\/span><\/h2>\n\n\n\n

After adding indicators, a trader needs to assess the behaviour of each of them to find signals<\/a> to open a position. Let’s take a closer look at how to buy by the strategy:<\/p>\n\n\n\n