We will take a look at the concept of following the movement of Forex prices through charts and make huge gains in foreign currencies in a simple and proven way. If you use the FX strategy attached, you'll notice every big trend and win – let's look at it in more detail.
If you look at a chart of any currency pair, you'll see large trends that last for weeks in a row and these trends can give you great profits if you know how to get there. The good news is that big trends all start and continue the same way – they break the general resistance and then move up and this is called a breakout. If you trade in the profiles, you will have a simple and powerful way to simply follow the price action and get all the big trends.
Of course, not every break of resistance will see a new development and many will fail to follow. To make profits, you need to know which breaks offer you the best odds – before entering your trading signal.
The best rest periods are those that occur after testing the level several times and become important to other traders. If a level is tested several times, traders will want to shorten the resistance and stop it. Whenever the level is tested, stops are accumulated behind the resistance. When a breakout occurs, these stops are triggered and the price is pushed away from the breakout point, then a new technical buying that pushes the price away from the breakout point and a new trend arises.
In terms of the number of tests before the break, I like about 4-6 Ideally, I want to have two of those testicles separate for at least a month. A breakout is when it comes to the best, if most people think that the currency should go in the opposite direction. The reason why these fractures are better is that the vast majority of traders always lose money and it is likely that there will be a lot of stops to hit when the resistance gives way and these losers get out of the market.
The simple method above, will make you earn more money, will not only bring you all the big trends, let you trade a few times a week and make triple gains. If you want to be successful in currency trading, there is no better way than choppy trading.