In this article, we will introduce one of the best forex trading strategy used by many which can get you cashing in big profits. It is the catching the breakout. Once you are confident in the method. You will be finding yourselve trading like a pro in no time. Let us see how powerful this strategy can be.
If you study the currency price movement, you will find out that the point where the price shoots and moves the biggest are usually a price break out to new market highs or lows. If you focus on catching these breaks, you could be rolling in big profits.
Although it can be the best forex trading strategy, one must have to have the patience to wait for the breakout. You can be waiting as short as a few minutes to as long as hours or even days if you really want to catch a good one. Newbie usually will not have that much patience and started trading for the sake of trading. Lost of patience can make the whole system fails.
This strategy is so easy to use. You simply have to learn how to see limit and support lines. Once to identify the support and limit nearest to the current price, the next thing you have to do is just wait. Wait until the current price breaks the out of the limit or support line, then you enter the market. If the price prices below support, you do a sell. If the price breaks above the limit, you do a buy. It's that simple considering it as some of the best forex trading strategy
On top of that, you can add indicators to your chart to detect false breakouts. False breakouts can make you lost money on a trade. It is a breakout that immediately returns to the previous range of price. You can be using MACD, RSI and stochastic to determine is a breakout is real.
It can be the best forex trading strategy if used properly and wisely. Do not forgot the most important part of the game is to wait patiently. Catch only the best chance. If you are unclear of a trade, do not make it.