Forex Pips Strategy

Forex Pips Strategy By James Taylor

http://www.FishingForexPips.com

Finding an effective forex pips strategy to use that is easy to learn and implement may prove to be a struggle for some people simply because of the huge number of complicated but ineffective systems and methods for currency trading that you can find online.

In reality, forex trading does not have to be costly or difficult in order to be successful. Some are rather simple and easy to implement such as using the support and resistance levels in a particular market to get into trades with high success probabilities.

It is common knowledge that trending markets offer great opportunities to secure profitable trading positions

The reason for this is that there are underlying factors, both fundamental and technical, that make it possible for a particular currency pair to ride a favorable trend.

All the trader has to do is to be able get into a strong trend. This can only be done by understanding the fundamentals of market trends and where to come in.

Once you get a good grasp of these concepts, you practically have the foundation for a sound forex pips strategy which is basically being able to identify and trade with powerful trend directions.

When trending, a foreign exchange currency unavoidably flows and ebbs. In a powerful upward movement, for example, a market will usually make a remarkable upward push then stays put for a while before either continuing to move up or rotating downwards.

In some cases, the market will power its way through the trend direction but will quickly revert back to the latest resistance or support level without stalling out at all.

In forex trading, the trend is a friend, and there are certain rules that you must observe in order to master this trading strategy.

For one, you must be able to determine the existence of a trend where a series of “higher lows and higher highs” indicate an uptrend, and a series of “lower lows and lower highs” show a downtrend.

If you encounter a market that exhibits the same features, plot the appropriate resistance and support levels on a chart. Use horizontal lines drawn across the chart, mark points that are obviously high or low where the price shifted.

Keep in mind that the old resistance, when broken, becomes the new support, while the old support becomes the new resistance once it is broken.

One good thing about employing trend trading as a forex trading strategy is that it can be used for any time frame. This means that you need not trade off and monitor 30-minute charts all day because you can opt for charts with higher time frames.

You have the flexibility to take a look at the market for only a few minutes daily or even just for several times in one week. The best currency trading strategy involves the use of pullbacks in trending markets to secure a position in the trend direction.

There is absolutely no need for complicated forex strategies when there obviously are simpler but nevertheless effective trading systems such as the forex pips strategy.

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