The Forex trading strategy enclosed, is one that is proven to make money and many of the world’s top traders use it yet, very few new traders consider it but that’s of no real worry the bulk of novice traders lose money. Let’s look at this simple Forex trading strategy for success.

One of the most obvious things you will see, when studying Forex charts is that, Forex prices trend for many weeks or months, in a sustained direction. If you can lock into these trends and hold them, you can make huge gains but you need to know how they begin and continue to do this. A close look at any currency pair will reveal how they start and continue which is the basis of this strategy:

All big trends start and continue by breaking to new market highs – so if you buy these breakouts, you have high odds of success and can make a lot of money – Simple? Yes it is, so why do most novice traders ignore this way of trading?

The problem they have is mindset, when they see the break occur, they think prices are going higher but think “I better wait for a pullback so I can get in at a “better price” this of course is a huge mistake!

When the best breakouts occur, they don’t pullback and the novice trader watches as the price carries on making thousands of dollars and he’s simply not in it. These traders want to buy the low but this is impossible and they simply cannot buy a trend in motion but this is the way to make money in Forex trading, as the odds of a continuation in favor of the break are so high.

Forex breakout trading, is easy, all you need to watch for are levels of resistance which have been tested a few times ( the more times the better) and when the level eventually gives way you get on board.

Your stop is obvious and tight, just below the breakout level, giving you low risk and then you wait for the trend to unfold and hold it. To do breakout trading you just need to watch support and resistance and use a couple of momentum indicators, to time your move and you have a simple Forex trading strategy, for triple digit profits.

So learn the strategy the millionaire traders use – trade breakouts and get on the road to a great second income in 30 minutes a day, its easy to learn and is a strategy which will always work.

Some of the best forex trading tools are standard indicators which have been around for years. You may be surprised at just how effective and widespread these basic indicators are. Two of the best tools for trading any markets are moving averages and momentum based indicators. They may look simple, but in the right hands they can prove invaluable to your trading career.

Moving averages have been around for many years, but this doesn’t make them any less useful. The most effective and best moving based averages is a simple moving average. There are many different kinds of MA indicators, but only simple moving averages are used by large corporate market players such as banks and hedge funds. One of the main uses of these indicators by the professional market traders is to help them identify the trend.

Momentum based indicators are the second best tool that any trader should have in their trading toolkit. Momentum indicators measure the momentum in the market. Momentum precedes price. This means that when used properly momentum indicators can warn you in advance of possible future price movement. Some of the best momentum indicators are the stochastic and relative strength indicator.

There are a lot of different forex trading tools available today, but some of the best tools for any trader are those that have been around and used by traders for years. Moving averages and momentum indicators are used widely and with great success by profitable professional traders at banks and hedge funds still today.

If you want a simple Forex trading method which is easy to understand, you can learn quickly and makes triple digit gains then you will find one enclosed which could lead you to Forex trading success.

If you look at any currency chart you will notice they trend for long periods in the same direction either up or down but look a little closer and you will see something else…

Any currency which is bullish, will start its trend by making a breakout to new market highs on a chart and will continue it’s trend by breaking new highs. A simple way to get in on these big trends is to buy breakouts.

Most traders like to “buy low and sell high” and they try and predict where prices may go but this is just guessing and they end up trying to pick market tops and bottoms and lose.

If you look at a currency chart its obvious buying breakouts is the way to trade but most traders don’t trade breakouts; they want to wait for prices to come back and buy the dip – but good breakouts don’t pullback and the trader who waits, misses the really big trends and profits.

You have to be selective in choosing the best breakouts and this normally means a lot of tests in at least two time frames and the further these time frames are spaced apart the better. At least 4 tests should be the minimum before the breakout occurs and generally, its the more the better.

Breakout trading is very simple and it works – because currencies will always trend.

You can then lock into and hold the big trends which last for weeks and months and pile up some great gains and the risk is always low in breakout trading, as you simply place your stop below the level which has just broken.

You can use simple bar charts to do it and not use any indicators at all. We like to use a couple of momentum indicators to confirm price velocity is increasing through the breakout and this can help increase the odds of success and you can use one or two and learn them in a day or so.

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Here we will give you a simple Forex trading strategy which you can learn in around a week and then seek triple digit profits with, in around 30 minutes a day. Lets take a look at it.

This strategy is based on two simple facts which are obvious, if you look at any chart of any Forex pair.

Firstly, currencies trend for long periods up or down and secondly, any currency which is bullish, will start its trend by breaking to new market highs and continue its trend by breaking to new highs.

So our strategy is simple – we will lock into long term trends, by buying important breakouts of resistance.

Most traders never use this strategy, as they are obsessed with buying the exact low of any move and when breakouts occurs, they want to wait for the pull back but it never comes; they sit and wait and miss the move. The smart trader, buys the break and sure he has missed the first part of the move but the odds favour the move will continue and he has plenty of profit ahead of him.

So what should you look for in a breakout?

The number of tests is important, its the more the better and you should really look for at least six tests before the breakout occurs and the wider these tests are apart in terms of time the better.

When any breakout occurs, it has higher odds of success if volatility in increasing and momentum is on the rise.

To check if this is happening, learn some momentum indicators and two of the best are the RSI and stochastic. We have covered these in other articles, they only take a few hours to learn so make them part of your essential Forex education.

Breakout trading in terms of risk control is easy – you put your stop under the breakout point and on good breakouts, this will give you low risk and the possibility of a high return.

Each month you will spot a couple of really good breakout trades to take and you can easily make triple digit gains with this simple Forex trading strategy.

You trade the reality of price, with no prediction needed and as long as Forex markets trend this strategy will make money. So trade the breakout and make yourself a great second or even life changing income.

NEW! 2 X FREE ESSENTIAL TRADER PDFS
ESSENTIAL FOREX TRADING COURSE

For free 2 x trading Pdf’s, with 50 of pages of essential Forex info and more on Forex Breakout Trading visit our website at: http://www.learncurrencytradingonline.com

Article Source:http://www.articlesbase.com/currency-trading-articles/forex-trading-a-simple-strategy-anyone-can-use-for-big-gains-997830.html