Best Forex Trading Strategy - Learn to Trade Breakouts For Triple Digit Gains

If you are looking for the best Forex trading strategy, you should consider basing yours on trading breakouts. Breakout trading is easy to learn, understand and have confidence in and you can soon be trading like a pro and earning yourself a triple digit income in just 30 minutes a day. Let's take a look at breakout trading in more detail.

If you look at currency price movement on a chart, you will see that all the biggest and best bullish trends, start by breaking out to new market highs. The trend continues in this way too and if you focus on trading these breaks of resistance you can make big gains with low risks.

The good thing about breakout trading is you don't have to predict anything - you simply wait for the break and execute your trading signal and put your stop below the breakout point which will now act as support.

Of course when you are trading breakouts, they don't all continue in favour of the break so you need to be patient and be selective in terms of the trades you take and here is a check list to follow:

Look for at least 6 tests of a level before considering to trade a breakout if it occurs. In general terms the more times the level has been tested the better the odds when the break comes.

Look for at least 2 of the tests of resistance to be at least a month apart in terms of time. The greater the number of tests in different time frames and the wider these tests are apart the better the odds of success.

You can trade breakouts by just using chart resistance. Many traders do this but to improve your trading accuracy, you should check that when the break occurs, price momentum is on your side and to see this you can use several indicators. There are many indicators to choose from but we like the MACD, RSI and Stochastic. In part 2 of this article we will discuss how to use these indicators to confirm your breakouts.

Breakout trading remains the best Forex trading strategy because it is so easy to understand and as long as there are trends in the market it will always work - so base your trading strategy on breakouts and you will have a simple and timeless way to make great trading profits.



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