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If you want a simple Forex trading method which is easy to understand, you can learn quickly and makes triple digit gains then you will find one enclosed which could lead you to Forex trading success.
If you look at any currency chart you will notice they trend for long periods in the same direction either up or down but look a little closer and you will see something else...
Any currency which is bullish, will start its trend by making a breakout to new market highs on a chart and will continue it's trend by breaking new highs. A simple way to get in on these big trends is to buy breakouts.
Most traders like to "buy low and sell high" and they try and predict where prices may go but this is just guessing and they end up trying to pick market tops and bottoms and lose.
If you look at a currency chart its obvious buying breakouts is the way to trade but most traders don't trade breakouts; they want to wait for prices to come back and buy the dip - but good breakouts don't pullback and the trader who waits, misses the really big trends and profits.
You have to be selective in choosing the best breakouts and this normally means a lot of tests in at least two time frames and the further these time frames are spaced apart the better. At least 4 tests should be the minimum before the breakout occurs and generally, its the more the better.
Breakout trading is very simple and it works - because currencies will always trend.
You can then lock into and hold the big trends which last for weeks and months and pile up some great gains and the risk is always low in breakout trading, as you simply place your stop below the level which has just broken.
You can use simple bar charts to do it and not use any indicators at all. We like to use a couple of momentum indicators to confirm price velocity is increasing through the breakout and this can help increase the odds of success and you can use one or two and learn them in a day or so.
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