Tim Trush & Julie Lavrin

Introducing
MAGIC BREAKOUT
Forex Trading Strategy
Your guide to financial freedom.
Tim Trush, Julie Lavrin, T&J rofit !lu", #$$% & #$'(, )ll rights reserved
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Table Of Contents
Chapter I: Introduction
I.. !h" MagicBreakout#$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$%
,hat ma+es the MagicBreakout strategy different and magic.
I.&. !hat is reall" a 'brea(out)#$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$%
Identify -good. "rea+outs and -false. "rea+outs. /ood "rea+outs result in nice 0rofits, "ut false "rea+outs turn "ac+ to
losses. The next 0aragra0h *ill reveal the secret *hy false "rea+outs occur more often and *ho is res0onsi"le for this
0henomenon.
I.%. The secret behind false brea(outs$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$*
1ave you heard a"out the old famous 123-Pattern2 1ave you ever tried it2 1ave you tried to trade the "rea+outs2 Forget it.
Let3s ex0lain the insider3s secret *hy most traders lose money trying to catch the "rea+outs. Let3s discover the myth.
I.*. +ulie co,es -ith a .enial solution: Enter the brea(out before the cro-d/$$$$$$$$$$$$$$$$$$0
This is the heart of the MagicBreakout strategy. Julie has found a tric+y *ay to distinguish "et*een good "rea+outs and
false "rea+outs. 4oreover, her eyes see a "rea+out "efore it ha00ens5 Amaing! " can#t $elieve "#m %oing this&'
Chapter II: Entr"
II.. Chart set1up$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2
re0are your chart.
II.&. Entr" rule$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$3
6nter the mar+et only *hen your system tells you. 6motionless trading.
II.% 4ractical i,ple,entation$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$5
7ecogni8e a valid entry ste0 "y ste0.
Chapter III: E6it
III.. Chart set1up$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
re0are your chart.
III.&. E6it rule$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$&
7emem"er9 6xit is much more im0ortant than entry5 :no*ing *hen it is time to exit the mar+et is a very im0ortant tas+.
Some traders get out too early of a *inning trade "ecause they do not follo* a given system. Some traders enter the mar+et
"lindly and they nervously *atch the chart and as+ themselves9 -Should I close the 0osition no*... or ;<,25.. Their
emotions control their trading and they consistently lose money. 7emem"er, it is a disci0line that se0arates *inners from
losers.
Chapter I7: Ma6i,i8e "our profits and achie9e e6ponential earnin.s
$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$%
If you strictly follo* the money management rules, it is a very easy tas+ to "ecome a Forex millionaire in a relatively short
time. !an3t "elieve2 Let us sho* you the math.
***.magic"rea+out.com #
Chapter I: Introduction
I.. !h" MagicBreakout#
Enter the ,ar(et before the cro-d.
,ith this strategy you *ill "e a"le to 0redict "rea+outs "efore the momentum traders arrive.
Ma.icBrea(out is a conser9ati9e tradin. strate."
It3s safe. You ris+ a small amount of money on every trade.
Mechanical.
Trade "y follo*ing a set of sim0le rules.
Eas" to i,ple,ent.
!onvince yourself that trading is really easy5
4rofitable.
If you stic+ to the rules and go through a series of losing trades, you *ill finally "ecome
0rofita"le.
:calable.
<ur 4agic=rea+out strategy has "ecome a +ey of the to0 traders.
)n im0roved MagicBreakout( strategy can ma+e >?%@ in one month.
<ur student made A($$@ in one year using his o*n exit rules.
I.&. !hat is reall" a 'brea(out)#
) "rea+out ha00ens *hen the 0rice "rea+s a significant high and ma+es a ne* high. This is the
definition. Let3s give an exam0le.
)nother "rea+out ha00ens *hen the 0rice "rea+s a significant lo) and ma+es a ne* lo).
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It loo+s sim0le. 4ost traders are trying to catch these "rea+outs and ma+e money on the accelerated
0rice move. ) soCcalled momentum tra%er 0laces his "uyCsto0 order Dust a"ove the significant high. 1e
is *aiting for this high "rea+out... If there is no "rea+out, he cancels his "uyCsto0 order and 0re0ares for
the next trade. If the "rea+out ha00ens and his "uyCsto0 target is filled, his trading 0latform
automatically o0ens a long 0osition. The same holds for a lo* "rea+out Ein that case, trader *ould
0lace a sellCsto0 orderF. ,hy traders are doing that2 =ecause the 0rice action ty0ically accelerates after
a "rea+out and results in a nice 0rofit. =ut it3s not so s*eet every time. There is a ris+ of significant
loss. The nightmares of momentum traders are -false "rea+outs. and they ha00en too often. Let3s
ex0lain )h*.
/ood "rea+out False "rea+out
I.%. The secret behind false brea(outs
Let3s discuss the false highC"rea+outs Ethe same holds for lo*C"rea+outsF. There are times *hen 0rice
"rea+s a significant high, a "uy order is filled, long 0osition is o0ened, "ut the 0rice Guic+ly turns "ac+
do*n and never comes u0 or Sto0 Loss is filled. The trader has to exit 0osition *ith a loss. Small losses
are not something unusual. 6very 0rofessional trader has losses in Forex trading, you have to admit it.
=ut a 0rofita"le trader *ins more than loses after time. ,e have tested some "rea+out systems on all
maDor currency 0airs ten years "ac+. 4ost of the "rea+outs *ere false "rea+outs or resulted in a small
0rofit. )ny system that relies 0urely on "rea+outs does not *or+ consistently. Since *e, Tim and Julie,
are in the financial mar+ets for more than ten years, *e have collected some sort of information the
large "an+s and cor0orations do not *ant you to +no*.
) large "an+ has enough money to move the mar+et for a *hile. ,hen the 0rice hits the
significant high again, it should normally "ounce "ac+ from this high forming a %ou$le to+ 0attern. =ut
momentum traders *ould go long *hen a "rea+out ha00ens C it is the *ell +no*n 0ractice ex0lained in
0revious 0aragra0h. ,hen the 0rice comes close enough to the high, traders inside the "an+ Guic+ly
"uy a large volume of one currency 0air EH millions5F. They move the mar+et a fe* 0i0s u0 and a
forced "rea+out ha00ens5 There is a "unch of "uyCorders lying Dust a"ove the high and these orders get
filled immediately. Then the mar+et moves some additional 0i0s u0 "ecause of the ne* long 0ositions.
)fter that the "an+ ha00ily closes its o*n large 0osition Esells the millions "ac+F and the 0rice Guic+ly
turns "ac+. The "an+s -earn. great amount of money doing this unfair "usiness. They do it a fe* times
every day...
***.magic"rea+out.com (
I.*. +ulie co,es -ith a .enial solution: Enter the brea(out before the cro-d/
Julie ex0erimented *ith the !!I indicator E!ommodity !hannel IndexF in the Forex mar+et years ago.
There are t*o common lines9 >'$$ line and C'$$ line on the indicator chart. ,hen !!I crosses Eor
-"rea+s.F the '$$ line u0*ard, it is a good entry signal to go long. ,hen !!I crosses Eor -"rea+s.F the
C'$$ line do*n*ard, it is a good entry signal to go short.
/ood signal means that the 0ro"a"ility of *inning dramatically increases. In other *ords &
!!I indicator acts li+e a filter for s0otting *inning trades. ;ot only a filter. It gives an o00ortunity to
enter the mar+et "efore a "rea+out5 There *as a hard *or+ in develo0ing a definite 0rofita"le strategy
"ased on this +no*ledge. <ur strategy is easy to use and gives im0ressive results. ,ith our students,
*e made a fortune in the years #$$? and #$$% starting *ith less than one thousand dollars. ,e *ill
give our +no*ledge to you in the next cha0ters.
***.magic"rea+out.com A
Chapter II: Entr"
II.. Chart set1up
For the entry rules, *e need t*o "asic indicators9
!!I #$ E!ommodity !hannel Index, eriod #$, Ty0ical riceF
The ,ave E64)B( 1igh, 64)B( !lose, 64)B( Lo*F
The second one actually consists of three ex0onential moving averages, "ut *e *ill treat them as one
indicator called the ,ave. ,e *ill call the moving averages ,ave-to+, ,ave-mi%%le and ,ave-$ottom.
The setCu0 for 4etaTrader (9
***.magic"rea+out.com ?
<ur chart is 0re0ared for trading the "asic MagicBreakout strategy
II.&. Entr" rule
First, *e *ill discuss long entries. ;o*, read the rules and you *ill learn 0ractical im0lementation ste0
"y ste0 in the next 0aragra0h.
Be sure that the ,ar(et is trendin. up.
=e*are from the side*ays mar+et. The ,ave is a great tool that hel0s us to determine the trend.
Trend definition9
I0trend9 The 0rice has already crossed the ,ave u0*ard and the 0rice is a"ove the ,ave-
$ottom at this moment.
Jo*ntrend9 Similarly, the mar+et is trending do*n if the 0rice is "elo* the ,ave-to+.
I0trend Jo*ntrend
***.magic"rea+out.com %
4rice -as abo9e the Wave for so,e ti,e.
Ea"ove the ,ave-to+F
4rice entered the Wave.
rice *as a"ove the ,ave and then crossed the ,ave-to+ do*n*ard.
CCI crossed ;<< line up-ard= A 4O::IB>E >O?G E?TR@ :IG?A> on the ne6t
candlestic( openin..
This is a good signal to go long on the next candlestic+ o0ening. =ut "e careful...
'Ai9e bars chec() rule.
!hec+ that !!I *as "elo* the >'$$ line for at least five "ars "efore the cross.
Chec( that the ,ar(et is trendin. up no-.
!hec+ that the 0rice is a"ove the ,ave-$ottom as in the first rule.
Bu" no-/
If all a"ove has fulfilled, "uy as the ne* candlestic+ o0ens.
Loo+ at the 0icture. ,e have defined an interesting 0attern called the -s*ing..
***.magic"rea+out.com K
Sim0ly said, +rice entere% the ,ave an% then returne% $ack u+. =ut this sentence sounds too
su"Dective. ,e have 0ut it all into ,echanical rules that are easy to follo*.
Jon3t enter the mar+et *hen you -feel. that the 0rice is going u0 again. Some traders do so, "ut they
get stuc+ *hen the 0rice 0lunges lo*er5 Jon3t rely on the standard "rea+out system. The "rea+out may
"e false. 6nter only if !!I has crossed the line5 Loo+ at the 0icture carefully. Jo you see that *e have
entered the mar+et "efore the "rea+out... "efore the cro*d25 Jo you see the great advantage of the
MagicBreakout strategy2
II.% 4ractical i,ple,entation
ractically, you must follo* the *ritten rules "ac+*ards9
CCI crossed the ;<< line up-ard.
,as it "elo* the >'$$ line for at least five "ars2 Is it a"ove the >'$$ line no*2 If yes, continue
to the next ste0.
-emem$er! the signal is vali% onl* i. the can%lestick has alrea%* close%.
Is price trendin. up#
Is 0rice a"ove the ,ave-$ottom2 EStic+ *ith our definition5 Jon3t let your feeling or intuition to
define the trend5 Trend definition is a mechanical tas+ here, although sometimes
counterintuitive.F If yes, go to the next ste0.
Bo "ou see a 9alid s-in. pattern#
Train your eyes on the first fe* trades and you *ill see the s*ing 0attern su"consciously
*ithout revie*ing the rules. 7evie*9 0rice *as a"ove the ,ave and then entered the ,ave. In
other *ords, 0rice crossed the ,ave-to+ do*n*ard. <:2
Bu" no-/
)nd 0re0are your exit targets...
,e can sim0ly create the rules for a short entry9
CCI crossed the 1<< line do-n-ard.
Loo+ at !!I *hen the candlestic+ has closed. ,as it a"ove the C'$$ line for at least five "ars2
Is it "elo* the C'$$ line no*2 If yes, continue to the next ste0. ,e have to chec+ mar+et
conditions.
Is price trendin. do-n#
Is 0rice "elo* the ,ave-to+2 EStic+ *ith our definition5 Jon3t let your feeling or intuition to
define the trend5 Trend definition is a mechanical tas+ here, although sometimes
counterintuitive.F If yes, go to the next ste0.
Bo "ou see a 9alid s-in. pattern#
Train your eyes on the first fe* trades and you *ill see the s*ing 0attern su"consciously
*ithout revie*ing the rules. 7evie*9 0rice *as "elo* the ,ave and then entered the ,ave. In
other *ords, 0rice crossed the ,ave-$ottom u0*ard. <:2
:ell no-/
)nd 0re0are your exit targets...
***.magic"rea+out.com L
/ote0 There e1ists a $etter entr* an% much $etter )a* ho) to i%enti.* the tren% an% .ilter some $a%
tra%es $* looking onl* once on another time-.rame. 2uch a s*stem is a great a%vantage $ecause there
are onl* .e) tra%ers )atching on t)o %i..erent time-.rames. 3ou )ill learn our 4ol* 5rail' in the
ne1t cha+ters o. the incre%i$le MagicBreakout( strateg* )ith our +ro+rietar* in%icators an% alerts
that )ill make *ou a to+ tra%er.
,e are too la* to )atch the market an% look .or goo% entr* signals.
The MagicBreakout( in%icators an% alerts hel+ us to %o it automaticall*. 3ou )ill
never miss a goo% signal or $reak the rules! the so.t)are can check all the rules .or
*ou. The so.t)are tells *ou e1actl* )here to +lace 2to+ Loss& ,e recommen% it .or
$eginners too. The in%icators )ill hel+ *ou .ull* un%erstan% the s)ing .ormation an%
our amaing s*stem.
Misit9
htt09NN***.magic"rea+out.comN0lus
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Chapter III: E6it
III.. Chart set1up
,e *ill use Fi"onacci targets in this version. Fi"onacci targets are very 0o*erful. ,e often see that
0rice hits the target and Guic+ly retraces "ac+. 4etaTrader ( setCu09
!lic+ on the tool 6i$onacci -etracement9
lace the Fi"onacci retracements on the chart as sho*n "elo*. !onnect the s*ing high *ith s*ing lo*
"y dragging the mouse.
You have to modify the default setCu0. ,e *ill use these targets9 <.<, .<, .2C and &.<. 7ightCclic+ on
the chart and choose 7$8ects List Eor use shortcut !T7L>=F.
Select 6i$o and clic+ 9%it. 6dit the targets "y dou"leCclic+ing on the Level and :escri+tion values. ,e
*ill use these Level values9 <, , .2C and &. You can choose a custom descri0tion for each level
value. ,e recommend to set something li+e <.< D EF as a descri0tion. It is a useful tric+O the
mysterious sym"ol EF *ill "e re0laced "y the 0rice level on the chart Eexam0le9 <.< D &.<*C<F.
***.magic"rea+out.com ''
III.&. E6it rule
lan your trade, trade your 0lan. Let3s assume *e have o0ened a long 0osition. ,e must ta+e care a"out
the 0rofit target and Sto0 Loss right after the entry.
lace the first 0rofit target EsellClimit orderF at '.?'K Fi"onacci levelO
lace the second 0rofit target EsellClimit orderF at #.$ Fi"onacci levelO
lace Sto0 Loss EsellCsto0 orderF at $.$ Fi"onacci level.
)s the 0rice hits our first target, close a half of the 0osition Eso *e recommend you to trade at least t*o
lotsNminilotsNmicrolotsF. )s the 0rice hits our second target, sell the rest. lace Sto0 Loss Dust t*o 0i0s
"elo* the $.$ level. The lo* acts as su00ort and if "ro+en, the trend is 0ro"a"ly over.
,e can sim0ly create rules to exit from a short 0osition9
lace the first 0rofit target E"uyClimit orderF at '.?'K Fi"onacci levelO
lace the second 0rofit target E"uyClimit orderF at #.$ Fi"onacci levelO
lace Sto0 Loss E"uyCsto0 orderF at $.$ Fi"onacci level.
/ote0 This is a $asic e1it rule. 3ou can consistentl* make mone* using entries an% e1its as %escri$e%
a$ove. But look at the chart0 )oul%n#t it $etter i. )e e1ite% later; The tren% continues an% )e are not
in& ,oul%n#t it $etter i. )e coul% s<ueee the tren% to the en% an% earn 4=59 +ro.it .rom one single
tra%e; Tren% .ollo)ing' .rom the $eginning to the en% o. the tren% is a %ream o. all tra%ers in the
)orl%. 2ome in%ivi%ual tra%ers kno) ho) to achieve it. The* kno) ho) to recognie that the tren% is
+ro$a$l* going to reverse. The* sta* )ith the tren% .or %a*s! )eeks or even months an% make millions.
3ou )ill learn ho) to earn thousan%s o. %ollars .rom a single tra%e >&? in the ne1t cha+ters o. the
MagicBreakout( strateg*.
***.magic"rea+out.com '#
Chapter I7: Ma6i,i8e "our profits
and achie9e e6ponential earnin.s
,hat does your eGuity loo+ li+e2
'F ) ty0ical undisci0lined trader.
1e lost.
#F ) ty0ical disci0lined trader.
1is account is gro*ing.
=ut it3s gro*ing slo*ly and suffers dee0
dra*do*ns.
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BF ) ty0ical disci0lined trader that fully
understands money management.
1is account is gro*ing consistently.
(F ) ty0ical disci0lined trader that fully
understands money management and has
read the True Money Management "oo+.
1is account is gro*ing consistently and
ra0idly.
1e ta+es millions from the mar+ets and
he is *inning trading com0etitions. Some
0rofessors of economics call him -a
luc+y "oy. "ecause they can3t "elieve it3s
not 0ure luc+ that made him successful.
1e is a real guru "ut not a genius. 1e is
Dust acting smart.
All four traders -ere tradin. the sa,e strate."/
) 0rofita"le strategy is not everything you need to ma+e money consistently. You must strictly follo*
money management rules. You need to +no* ho) much money to ris+ 0er trade and ho* to avoid
losses. If you *ant to learn sim0le mathematical tric+s and techniGues of the Forex gurus, visit9
***.True4oney4anagement.com
Jo you "elieve it3s 0ossi"le to ma+e >?%@ in one month from conservative trading2 Jo you "elieve
that our student made A($$@ in one year2 Jon3t2 /et a 0roof and start trading the im0roved
MagicBreakout( strategy *ith automated entry signals and unlimited 0rofit 0otential.
For more information, visit9
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