Forex Strategy for Beginners - The Easiest Forex Strategy

Forex Strategy for beginners “The simplest Forex strategy” is fully consistent with its name. It contains a minimum of trading conditions, does not use complex

Forex Strategy for Beginners - The Easiest Forex Strategy

Forex Strategy for beginners “The simplest Forex strategy” is fully consistent with its name. It contains a minimum of trading conditions, does not use complex indicators that can confuse a beginner, and most importantly - allows a trader to earn money by spending a small amount of time and effort. It is only important to clearly follow the trading algorithm and adhere to the rules of money management.

 

It is important to understand that Forex trading, even if using the simplest trading strategies, should be a conscious process. It is vital for the trader to understand what is behind every strong market movement in order to better see the situation as a whole.

 

As you know, 3 price states (quotes) are distinguished: bullish trend, bearish trend and flat (sideways trend). According to the Forex strategy for beginners “The simplest Forex strategy”, we will use precisely trend movements, i.e. first 2 options. Indeed, it is in a trend that it is easiest to find a good entry point, as well as control open positions, getting maximum profit on strong trend movements.

 

The essence of trading strategy (TS)

This TS uses 2 main price properties:

 

the price movement during the trend is likely to continue, which will make a rollback or switch to flat.

the trend does not change until the appearance of reversal signals.

Based on these axioms, it is easy to apply the tactics of rebound from the trend line. Maximum efficiency will be achieved when opening a deal on the third touch.

 

If we see 5 or more touches of the trend line, then we advise you not to trade in such cases. In this case, the breakdown of this line with a subsequent change in trend is very high. Therefore, we trade only on the third rebound and always along the trend. Quotation is rising - we are opening long positions, falling is short.

 

Forex Strategy Buying for Beginners “The Easiest Forex Strategy”

1. First, you need to build a trend line at two points: these are 2 rising lows, i.e. the trend is up.

2. after the price has approached the trend line for the third time and touched it, open a long position (purchase).

3. stop orders. The specific size of StopLoss and TakeProfit should be determined by the current volatility. It is important that the stop loss is at least 30-40 points, and the ratio of stop loss to take profit is 1: 2, i.e. take profit should be 2 times larger.

4. We trade exclusively on the EUR / USD currency pair, time interval H4.

 

Forex Trading for Beginners “The Easiest Forex Strategy”

1. First, you need to build a trend line at two points: these are 2 falling highs, i.e. the trend is down.

2. after the price has approached the trend line for the third time and touched it, open a short position (sale).

3. stop orders. The specific size of StopLoss and TakeProfit should be determined by the current volatility. It is important that the stop loss is at least 30-40 points, and the ratio of stop loss to take profit is 1: 2, i.e. take profit should be 2 times larger.

4. We trade exclusively on the EUR / USD currency pair, time interval H4.

 

As you can see, the trading algorithm of the strategy is simple and based on the patterns of price movement in a trend movement.




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