Here we will consider the concept of following the exchange rate impact on Forex using charts and making huge profits in currency in a simple and proven method. If you use the attached FX strategy, you catch all the big trends and profits, so – let’s look at it in more detail.
If you look at the chart of any currency pair, you will see great trends that last for weeks and they can bring you a fantastic profit if you know how to get into them. The good news is big trends that all start and continue the same way – they break the resistance overhead and then move higher, and that’s called a breakthrough. If you trade breakthroughs, you will have a simple and powerful method that just follows price actions and draws you into all the major trends.
Of course, not every resistance breakthrough will develop a new trend, and many will not be able to follow. To make a profit, you need to know which breaks offer you the best chance – before entering a trading signal.
The best breaks are those that occur after the level has been checked several times and has become significant for other traders. If the level has been checked several times, traders will want to get rid of the resistance and stop it. The more times the level is tested, the more stops are going right behind the resistance. If a breakout still occurs, these stops are triggered and push the price away from the breakout point, then a new technical purchase emerges that pushes the price away from the breakout point and a new trend is born.
In terms of the number of tests before the break I like about 4 – 6, and ideally I want 2 of these testicles to have at least a month. A break when it comes is even better when most people think the currency should go the other way. The reason these breaks are best is simple – the vast majority of traders always lose money, and there are likely to be many stops as resistance gives way and takes these losers out of the market.
The simple method above will help you make money and not only involve all the major trends, will allow you to trade only a few times a week and get triple digits. If you want to succeed in currency trading, there is no better method than breakthrough trading.