Forex trading does not have to be a complex mental challenge, there are many simple forex methods that can be profitable when you stick to the rules of that simple method and see the trades through. Many people will tell you different ways of trading forex and the truth is, there are hundreds, the problem is that not all traders suite the same trading methods.
In this article I am going to look at one of the simplest techniques used to trade forex on a day to day basis using a 5 minute scalping set up. First of all set your charts to 5 minute time frames and have these three simple indicators on your chart; exponential moving average Nbr 10, exponential moving average Nbr 20 and the daily pivot points. Avoid having any other indicators to keep this a simple forex method.
This simple forex method is basically using support, resistance and moving averages to show a short term change of trend. Initially what we are looking for in these indicators is the crossover of the two moving averages and the space between the two starting to widen, this is the indication that the trend is changing direction.
Next in this simple forex method we are looking for support, resistance levels and pivot points. We need the newly directed trend to break through previous support and resistance levels and any nearby pivot points. We would like the pivot point to be at least 20 pips of profit away for this simple forex method to be effective, ideally we would have just broken through a pivot point which is also the support or resistance level.
This is a simple method of taking 10-20 pips out of the forex market very quickly. However you can also leave these trades running until the moving averages cross back in the opposite direction or you reach the next pivot point, support or resistance level. Remember that not all trading methods are for every trader and practicing with a demo account is the best way to ensure a risk free way of testing the methods.