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Forex Trading- The Most Successful Forex Strategies
you want to catch the serious profit in forex dealing you need to trend
watch forex trends which are worse term. here we are going to give you
a 3 step simple method which if you use it correctly, will help you
catch every superior forex trend and lead you to long-term term
currency dealing success.
Most
beginner traders don't bother trying to trend following forex lengthier
term - instead they try forex scalping or day trading. These methods
focus the trader on small moves and they hope to catch small profit
however as most short term moves are random, this leads to equity
eliminate.
The other alternatives are swing trading and long
term forex trend following and this article is all about the latter
method. If you look at any forex chart, you will see long-term term
trends that last for months or years. These moves can and do yield
serious profit - present we will outline a simple method to get them.
Breakouts
By
far the best way of catching the serious moves is to use a forex
dealing strategy based around breakouts. A breakout is simply a move on
a forex chart where a new high or low is made and resistance or support
is broken.
It's a fact that most leading moves start from new highs or lows.
While
it might appear that you are not buying or selling at the greatest
level, you are in terms of the odds of the trend continuing. Most forex
traders make the mistake of waiting for the breakout to come back and
get in at a better price but these traders never get on board. The
grounds for this is if a breakout occurs, then you have a new strong
trend and a pullback is not very likely to occur.
Most traders don't buy or sell breakouts and that's exactly why it's such a powerful method.
The
only point to keep in mind is a support or resistance which is ruined,
should be valid and that means at least 3 points in at least 2
different times frames. The more tests and the greater the spacing
between the tests the more valid the level is.
Confirmation
Of
course not every breakout keeps and some reverse, these are false and
can cause losses. You therefore need to confirm each move. All you need
to do to achieve this is to put a few momentum indicators in your forex
trading system to confirm your dealing signal.
These indicators
give you an estimation of the strength and velocity of price and there
are many to choose from. We don't have time to discuss them here
(simply look up our other articles) but two of the greatest are - the
stochastic and Relative Strength Index RSI
Stops and Targets
Stop points are easy with breakouts - Simply behind the breakout point.
If
you have a serious trend then you need to be careful you can milk it,
so don't move your stop to soon and keep it outside of normal
volatility. If it is a huge move, trailing stops should be held a
long-term way back and the 40 day moving average is a good level to use.
You
have to keep in mind that when the trend does eventually turn you are
going to give some profit back. You don't know when the trend is going
to end, so don't predict.
It's ok to give a serious back, as
that's the nature of trading forex. Keep in mind if you got 50% of all
leading trend you would be very rich. When you are long-term term trend
following you have accept giving a bit back and taking dips in open
equity as the trend develops - this is noise and does not affect the
long term trend.
The above is a simple way to trend watch forex
and catch the high odds moves that yield the serious profit. If you are
learning forex dealing and want a simple method that is robust and will
help you get every major move, then you should base your dealing on the
above method.
Now that you have all the winning strategies, you
now need to have a winning broker, recently the CFD FX Report has
reviewed these brokers and have come up with Best Forex Broker to find
out this visit the website.
http://www.forexarticlecollection.com/trading-strategy/forex-trading-the-most-successful-forex-strategies.html
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| Category: Forex for Beginners | Added by: forex-market (2009-05-25)
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| Views: 900
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