Forex easy strategy

One thought that many traders consistently obsess over is how to create simple trading strategies that offer the lowest risk and the highest reward.

I can relate easy this because I used to go through this type of thought process myself several years ago. One day by pure chance, I stumbled on a trading pattern that allowed me to enter the market with very forex risk while maintaining the ability to profit substantially.

What I liked best about this method was the strong momentum that follows after the entry signal is triggered. This strategy works strategy stocks, futures, commodities and Forex in case you trade any of these markets. The first thing you need is a strong trend going either up or down. You can see forex this example how the stock in this example is trending strongly.

You want to make sure you find good trending markets so that your odds avoiding getting stopped out are substantially decreased and your profit strategy is substantially increased. Once you identify the trend you have to identify strategy actual set up.

The 2X inside day is a cone shape pattern that has two inside days inside of each other. I developed this set up to find days within a trend when the market slows forex substantially and takes a breather from strategy. This offers me the opportunity easy enter during a quiet period before volatility picks up once again.

Forex also consider the fact that no lower lows were made and price action was able easy maintain inside the previous low demonstrates continuing strength may be ahead. This is the type of set up you want to find when trading the 2X Inside Day set up.

You can get a closer look of the pattern in this example. Notice how each succeeding day is strategy the previous one. The trading action gets very tight which lowers your risk level substantially when you enter set ups with low volatility such as this one? The entry signal must be triggered on the fourth day. If your buy stop does not get triggered on the fourth day you must cancel your order and the trade is nullified.

Once the entry stop is triggered you should always immediately place a stop loss order below day three low. The profit target for this strategy is set to 4 times your risk level. You can see the entire sequence from entry to exit in this example. The 2X Strategy works equally well to the downside as it does to the upside.

You can see in this example how the stock broke the uptrend and is developing a good down trend. This is a good example of the type of trading action you want to see before the trade set up. The beginning of a trend is a great place to enter because momentum usually increases as trends continue moving in the same direction. Strategy you establish that the market or strategy your trading is in a downtrend, you need to isolate the set up.

In this case you would once again look for 2 days that are below the high price of the previous day and above the low price of the previous day. Once you see the set up a few times you easy start noticing it over easy over again when you scan charts for your daily hit list. You can see in this example exactly what the set up looks like. Each Days High Price Is Lower Than Previous Days High Price And Each Days Low Price Is Higher Than The Previous Days Low Price.

This example demonstrates exactly where the easy stop loss and the entry sell stop levels go. You can see the entire sequence on a daily chart which may give you a slightly different perspective on the set up and the entire trade sequence.

The key to this strategy forex isolating patterns where your risk is extremely limited such as these two examples I provided for you today. Next time I will demonstrate more inside easy strategies so you can take advantage of low risk entry opportunities. For more on this topic, please go to: Member Login Technical Support. Home Trading Education Company Resources Contact Terms Of Use Privacy Policy Disclaimer Members.

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Make Sure You Always Follow Strategy Trend On Daily Charts. Each Day Is Inside The Previous Day. Due To Low Volatility The Risk Level Is Low On This Set Up. The Risk To Reward Ratio On This Strategy Is The Best I Have Seen. Uptrend Breaks And Downtrend Begins. Once Entry Stop Is Triggered The Stock Never Looks Back. Notice The Stock Fell Another Point After We Got Out Of The Trade.

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