There are many Forex trading methods you can choose from but the one enclosed is simply the best in terms of making the biggest profits in the least amount of time and even better news is anyone can understand why it works and then use it to make big profits.
Many traders think the way to make money in currencies is to predict where prices might go but prediction is really a guess as no one knows what millions and millions of traders will do in advance and this method of trying to pick a low in advance is doomed to failure.
The best way to trade Forex is to trade a high odds confirmation of a trend being confirmed; the best way to do this is obvious, if you look at any Forex chart. All big bull trends start in the same way, they break through overhead resistance and make a new high furthermore, as the trend progresses the currency continues to breakout to new highs so to get in on all the biggest and best trends, you need to buy breakouts.
The key with buying breakouts is to look for strong levels of resistance that have been tested several times and the past and held – the more times a level has been tested and held before the break, the better the chances of a continuation of the break when it finally occurs.
Ideally you should look for six or more tests and these tests, should also have at least two them six weeks apart or more so in conclusion, the more tests and the wider apart they are on a chart in terms of time, the better the odds of the breakout continuing in the direction of the break will be.
Breakouts are high reward low risk way of trading and stops are always close, just under the level of resistance which has broken which now acts as support. If you only hit high odds breakouts you will trade a few times per month and be able to make triple digit gains in around 30 minutes per day.
You can of course just trade breaks of resistance on a chart but you can add some momentum oscillators, into your trading strategy to time your trading signals better. We will look at the best ones to use and how to use them, in part 2 of this article series on trading breakouts for profit.