subject: Forex Trading the Easy Way - How to Catch All the Big Moves and Profits! [print this page] Forex Trading the Easy Way - How to Catch All the Big Moves and Profits!
In this article, we are going to look at a simple Forex trading method which will get you in on all the big moves and profits. In addition, this Forex trading strategy is easy to learn and takes very little time to apply - just 30 minutes a day is all you need so let's take a look at the strategy in more detail.
The strategy is based on a simple fact about Forex trading which is - all the biggest and best trends start by breaking an important level of overhead resistance and when this occurs, the trend accelerates and if you buy the breakout, you will have the odds on your side and make a lot of profit.
Look at any Forex chart and you will see this occur. If you look closely, you will also see these trends can last for weeks or months and they ALL start from breaks of overhead resistance. While buying breakouts is an obvious a way of making money, very few new traders buy breakouts - but professional traders do it all the time and make huge profits.
The reason most traders ignore these moves is because, they miss the first bit of profit from the trend and wait for the market to come back down, to get in at what they consider is a better price. Prices on the best breakouts though do not dip back - the professional trader who bought the move is not concerned about the small part of the trade he has missed, he is focused on the potential profit ahead and in many instances, this can be a trend which lasts for many weeks.
When buying breakouts, you can simply you look for resistance levels which have held in the past and when they break you go with the breakout.
The key is to look for levels which have been tested enough times for traders to feel there important - so how many tests should you look for? I like to look for a level which has been tested at least six times or more and always keep in mind - The more times a resistance level has held before the break, the high the odds of a breakout continuing when it does occur.
You can simply buy breaks of resistance but its a good idea to use a few momentum indicators to confirm your moves. You only need to use a few and we will look at the best ones, in part 2 of this article series on trading high odds breakouts for profit.
