If you want a Forex trading strategy which is easy to understand and makes big gains in just 30 minutes a day, then this is the strategy for you - let’s take a look at it in more detail.
Most novice trader’s don’t bother with this strategy but don’t let that worry you, most traders lose but the really pro traders know that this strategy is based on the way all big trends start and continue and its a proven way to make money.
So how do all the big bullish trends start and continue?
If you look at any currency pair you will that they start by breaking to new market highs and continue by breaking to new market highs as the trend develops. So by buying breakouts, you get in on all these trends and have the odds on your side - well that’s simple enough, so why don’t most traders do this?
The reason is they think when a break has occurred they have missed the start of the move, so they wait for a pull back and of course it doesn’t come. The price normally gains momentum ON valid breakout and carries on in the direction of the break; the trader who waited for the pull back misses a great trend and a great profit opportunity.
Making Forex profits is not about buying the low, because that involves prediction and that’s doomed to failure, because Forex markets cannot be predicted. Making money is based around trading the odds and a valid breakout gets the odds on your side and can help you get in on EVERY Big trend and big profit.
So what is the definition of a valid breakout?
Generally, the more tests that occur before the level of resistance gives way the better the odds are of the break continuing and the greater the distance in time between the tests, the more valid the breakout is likely to be. If you have a level which is considered important by the market and it gives way, stops will be hit and send the price further away from the breakout point. Next, technical buying comes in and pushes the price further in the direction of the break and then retail buyers start to come in.
Breakout trading is simple to understand and have confidence in and your strategy for buying breakouts can be very simple and I know traders who make money just looking at resistance levels but personally, I like to add a few momentum indicators, to see if price momentum is gathering pace as the breakout occurs and I find this increases the odds of success.
Breakout trading is a simple timeless way to make money and if you base your strategy on it, you can make a lot of money in around 30 minutes a day.
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