The simplest forex strategy
This trading option is truly the simplest Forex strategy, since anyone can use it.
If you follow the recommendations exactly, it allows you to get a good profit from a relatively small deposit.
Its use does not require special knowledge, so it is suitable for a trader with any level of knowledge.A
The application is based on the use of visual analysis of the current situation on the market; all you need to do is carefully study the chart of the selected currency pair and correctly calculate the transaction volume.
Installation of additional indicators is carried out only at your request, and is not a prerequisite.
Moreover, these price fluctuations should have as wide a range as possible, as this indicator will determine the size of your profit and the placement of stop orders – stop-loss and take-profit .
How to Apply a Simple Forex Trading Strategy
1. Trading instrument – we select a trading instrument that currently shows a clearly visible trend direction and has clearly defined candlesticks.
2. Volume – it is advisable to maintain a ratio of the size of the open position to the deposit that will guarantee you will be able to withstand a correction on your time frame.
For example, if the maximum correction value is about 200 points, then the maximum transaction size with a deposit of $100 should not exceed 0.1 of the standard forex lot.
Only in this case will you fully protect yourself from possible troubles.
3. Enter the market only if the price has formed a clear price corridor over the last few hours, the support and resistance lines of which show the main direction of the trend.
4. Setting a stop-loss order – the price range usually clearly shows where to place safety orders, so we place the order a maximum of 150-200 pips below the opening price, assuming you've chosen the entry point correctly. Ideally, it should be outside the channel, in our case, below the support line.
5. Take profit – This will depend on how dynamic the trend is. If you're confident the current trend will continue and the price is moving fairly quickly, set the take profit at a level of at least 200-300 points, but focus on the opposite channel boundary. Once the position begins to generate profit, you can replace the take profit with a trailing stop .
To make even the simplest Forex strategy effective, we use technical trend and channel indicators. This step will allow us to perform all necessary constructions in a fully automated mode.
You will find a slightly different version of trading in the price channel in the article - http://time-forex.com/terminy/price-channel , it is also suitable for traders of any skill level.
Read a new article on this topic here - http://time-forex.com/strategy/prostye-strategii-primenyaemye-na-forks
