How To Trade Breakouts on the 1 Hour Chart?

Hey All, Timon Weller here..

In a previous video I suggested that I was not much of breakout trader, since then I have received numerous emails asking me to share how I do trade them when I do decide to use them as trade entry.

So here is my video on the subject below for your enjoyment.

Before you start watching, let me first describe what is a breakout. A breakout is when price breaks beyond a level of support or resistance in the form of a trend line of horizontal trend line break and in an area where you would expect either the price to break much higher or much lower.

breakout trade in forex

A breakout trader in general will place orders above or below these areas because they are trying to capture the move beyond a particular range to the high of the next range or beyond.

Method Tip

By the way, if you are wondering what method is the highest probability out of the two, the trend line breakout or the support resistance breakout, well I have been over the figures and trend line breakouts are much more effective by far..

trendline breakouts

While may seem like a great idea, there is more to it than just placing orders and if done wrong can easily get the trader into the worst trade situation possible. Basically put, a fake out, this is the opposite to a breakout and is when many traders do the opposite when a pair is breaking out, they sell or buy, but in particular it is where banks do most of there money making, so in order to trade this effectively you must first master where the best places are to buy and where you should not. This is key to the methods success.

Above Video – Sit back, relax and enjoy.. I hope you enjoy the Video, If you trade this style, let me know your thoughts below by commenting..

About Timon Weller

Timon Weller is the professional Writer and Trader behind the blog Forex Reviews. Timon Weller is also a professional Teacher of Price Action Trading and creator of the popular Training Series teaching people how to trade Price Action effectively called The Engulfing Trader. For other Forex Training available here at Forex Reviews click here.

For more on Timon Weller Click Here. To Learn more about How to Trade the Market and get updates Click Here.


  1. senthil kumar says:



    • Hey Senthil,
      There is heaps of other aspects other than just price action, structure being another.. subscribe here via email to get all of my videos and updates..

      • Corey Miller says:

        Hi Timon! I enjoyed your recent breakout video. I have been studying these breakouts for quit some time now, but I lacked the confidence to act on them. Your video has helped me tremendously. Due you ever consider divergence tools when looking at breakouts on the 1 hour time frame? Especially after a long trend channel has emerged of course. Thanks! 🙂

        • Hey Corey,
          You’re welcome, thanks for the feedback on the video.
          No, I do not use divergence or any indicators in any of my trading at all.
          An aspect to be aware of as a trader is indicators follow price and so in general are lagging where as candlestick price action is current.

  2. kevin trimmier says:

    Another video that you show how to profit in the forex. You teach in a very easy to understand way and show how it’s done using the charts as a guide. Breakout trading seems real easy as you show it on the chart and it is easy, the hard part for man traders is the trader doing his homework through back testing so that when he is in his trading live he can identify the potential breakout and act upon it. Someone can show you how something is done but you not able in identifying it is on you and requires you to do the work in learning to identify the trade as it presents itself to you.

    Again thank you for your knowledge in the Forex.

    • Hey Kevin,
      Thanks for the positive feedback mate, yeah showing creates the connection though to the trader in order for them to start seeing it. Start seeing high probability setups. After seeing a pattern enough times it does become easier and easier even when going into a live setting, just takes time and the right knowledge to learn it properly as a skill though. Many traders like to see trading as complex, but in reality by doing so it only makes it complex. Keep it simple, stick to what works and good old money management is key to gain overall..

      Have a nice day and come back and visit anytime..

  3. Pretty good vid on break outs, combined with your engulfing trader and 5 day trend series which I feel all I need to trade. concepts make sense after back testing. I have been a trader for about 4 years and this is the first I have started to be profitable. personally I have purchased a lot of books, cd and dvd. I must say your forex training is among the best in my collection. I now can analyse and chart and predict with great accuracy the next direction. I have a personal question on your trading style, how many times you trade a week, just trying to see if i am trading too much, I tried weekly time frame, the swap fee eating into profit on these long term and what is the best times to trade a day seems like the 6:30 am to 12 pm eastern very active, the New York open, London cross over. just trying focus my trades on the best time of days to trade, Thanks for the great trade videos, heres to joining the profitable trades!

    • Hey Marvo,
      Firstly thank you for the amazing feedback. Appreciate it very much.. With your question, it depends on the week, sometimes very active and can be as much as 10 to 20 trade signals per week and sometimes when the market is quiet it can be as low as 5 to 10 trade signals per week. When I day trade however in a week it can be much much more.. With your query on weekly chart trading I look at swap in the equation as well and I like to balance the situation by taking positive swap positions as well as ones that may cost. That way it balances out if swap is an issue which it can be.. As an example selling EURAUD is positive swap and so is buying AUDUSD or NZDUSD or AUDJPY… There are many neutral positions as well such as EURUSD..

      I think you get my point there, avoiding high swap trades is best unless you have another pair running that is counteracting the swap cost at the same time.. For pairs that have too higher swap one can also use a no swap broker as well such as Etoro for those trades alone..


  4. Hi Timon…recently joined your forum / emails and really enjoy your Mon weekly reports.. thank you.
    Today you posted the report on ” how to trade Breakouts”
    Can you help with the following
    If the pair is trading in a range of say 40 / 50 pips where the pin bars and or the support / resistance are evident on both the upper edges, how do you determine the direction of the possible breakout ??…ie it is in a channel , therefore breakouts are possible for both direction, what do i do?
    I also find myself calling (and justifying ) a double or triple bottom,( or top) and kind of willing the pair to change in one specific direction only to get it wrong…. Your advice pleeeease.. Thank you

    • Hey Gary,
      Always want to look at clues in the market in these types of phases, what trend was the market before the consolidation zone, what is the higher time frame suggesting? Is it suggesting a correction or a continuation? Each of these questions helps build a case for most likely movement, then of course weighing up potential risk to reward factors ( reward being focus ) if a right trade to take as well such as where would that trade be wrong and where if right would most likely the market go..

  5. John Rungen says:

    Hello Timon,
    Thank you for another great and simple tutorial. I have been trading Forex for three years now; I find your videos and DVD Training very easy to follow.
    Best wishes,

  6. Hi Timon,

    Thank you so much,for sending me the Breakout-video the way you explain is very easy to understand, a gain thank you a 1000 time, and God bless you my Friend.

    Cheers Reza.

  7. Thanks Timon ….

    Have a nice week trading

  8. craig donald says:

    Thank you Timon, so informative as I have a mush greater understanding of trading breakouts now!

    Warm Regards,


  9. Thanks Timon, some great tips as usual, keep them coming as they are much appreciated. Also thanks a lot for the time you give up to helping us novices through the trading maze


  10. Hi Timon!

    Thanks for your videos, they are great! I try watching them all.

    Could you make a video on your input on the 20,50 and 200 MA and also on the 8 EMA and how to trade with them.
    Ill appreciate and do notify me maybe when you do them



  11. Hi Timon,
    Thankyou for your video on breakout trading. All your knowledge is very helpful in deciphering market language so much appreciated.

  12. Thanks Timon,Very nice and useful video for breakout trades.

  13. Yes Timon, another great video, thanks for all your hard work that goes into making them for us, really appreciate it, thank you.

  14. Hi Tim,
    Thank you for the presentation on breakouts. what you say about being able to get in earlier if you follow price action does make sense on the support/resistance and bullish triangles zones.
    Difficult to spot, for me, on the trend channels though. Overall very well explained, thank you again.

  15. Another smashing video Tim, thanks for your help it’s a pleasure to have real people like you, good day. Gabriel.

  16. Frank Nilson says:

    Hi Timon. Thanks for the Breakout Trading method video. I have had some good results on breakouts. What is very important in Breakout Trading are the daily resistance lines on the daily chart when you are trading hourly charts. There are normally two resistance lines ie. the horizontal and the trend resistance line, the so-called channel resistance line. If there is a strong resistance line, the line must be broken properly. The following candles need to come back to test the new support line and once the candles turn again going north, you will only enter a new trade at the end of the candle which must be higher than the initial breakout candle. The Breakout candle is normally a candle that is visibly a tall candle which breaks the resistance line quite prominently and not just a small maybe candle. The secret here is to be patient and not to jump into a trade to quickly which will heighten the success ratio.

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