Here we look at the concept of tracking Forex pricing through charts and making huge foreign exchange gains with a simple and proven method. If you use the FX strategy provided, you will capture every major trend and profit, so – let's take a closer look at it.
If you look at a chart of any currency pair, you will see big trends that continue for weeks, and these trends can earn you fantastic profits if you know how to get into them. The good news is that big trends start and continue the same way – they break the resistance and then move higher and this is called a breakthrough. If you are trading breakthroughs, you will have a simple and powerful method that simply follows price action and gets you into all the big trends.
Of course, not every break in resistance will develop a new trend and many will not succeed. To make money, you need to know which breaks offer you the best odds – before you enter your trade signal.
The best breaks are those that occur after a level has been tested several times and becomes significant for other traders. If a level has been tested several times, traders will want to break the resistance and stop behind it. The more times the level is tested, the more the brakes stack up just behind the resistance. When an interruption occurs, these stops actuate and push the price from the break point, then a new technical purchase comes, which pushes the price away from the break 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 be at least a month. The pause when it comes is even better if most people think the currency should go the other way. The reason these breakthroughs are better is simple – the vast majority of traders are always losing money and there are likely to be many stops to hit as resistance recedes and drives those losers out of the market.
The simple method above will earn you money and will not only get you into all the big trends, it will allow you to trade only a few times a week and make three-digit profits. If you want to succeed in currency trading, there is no better method than breakthrough trading.