I composed this post for anybody to comprehend from beginner and up. First if you are new in trading Forex then you'll need basic eduion, charts, an economic calendar along with also a demo account. There are numerous links which you can google and find free sources. Here are a few that I used to get to where I'm now. All these are sources that are free.

Http://www.babypips.com/school/ caliber, basic Currency Market broker

http://www.netdania.com/ChartStationDemo.asp basic charts

https://www.cliqforex.com/general-fo...y-options.html economic calendar

http://fxtrade.oanda.com/ demo account (or some other broker which you select ) search for a broker with low spreads, speedy implementation, flexible account dimensions and low to hi leverage depending upon your choice. The lower the leverage the better in my view. Additionally, google Currency Market testimonials and also read comments published by other traders if you're searching for a broker.


My method is very simple. I exchange using aid resistance lines, trend lines, chart patterns and utilize price action to ascertain if/when I shall enter and exit transactions. I don't utilize any indiors or moving averages. I have tried trading methods using these tools but never could manage to consistently gain profits but might break even at best. I utilize most of time frames from monthly to 15 min to ascertain where to draw my lines.

CHART SET UP

Support/Resistance traces (S/R) - start in the month chart and work your way down to the 4 hour to see where the price is bouncing at least 3 times. Draw bold lines for the greater time frames every day, weekly and daily. For intraday time frames utilize thinner lines so that you will know that lines are the most powerful. The more times that the price bounces from a lineup, the more powerful that line is. These are crucial levels that I search for to be broken if entering a transaction.

Trend lines - that I utilize these the exact same way as S/R but the key in creating these work is drawing on them effectively. Start looking for more powerful, more dominant trends zooming in from month to 4 hour. Http://www.babypips.com/school/trend_lines.html

That really is all there is to setting up the chart.

OBSERVATION

I call my method The Breakout Method because that's exactly what we're looking for. That is where we will spend over 95 percent of our time waiting for the price to make certain chart patterns. This will place us on alert to become prepared to trade when the price breaks out of the pattern. I've noticed the price go mad like 800 pips on GBP/JPY and more but we're just looking for a bit of that.

There are mainly 3 patterns that I search for:

Symmetrical Triangles http://www.babypips.com/school/symme...triangles.html

Ascending Triangles http://www.babypips.com/school/ascending_triangles.html

Descending Triangles http://www.babypips.com/school/desce...triangles.html

After a large move I also look for reversal patterns accordingly be on the watch for these:

Double Shirt http://www.babypips.com/school/double_top.html

Double Ass http://www.babypips.com/school/double_bottom.html

Head and Shoulders http://www.babypips.com/school/head_and_shoulders.html

Reverse Head and Shoulders http://www.babypips.com/school/rever...shoulders.html

PUTTING IT ALL TOGETHER

After spotting any of the triangle patterns, what you are Searching for is for the price to make a candle outside of the triangle. This will be your very first indiion that the price is about to make a sizeable move. Don't enter any transactions only based on a rest of the pattern but wait until the price breaks the closest S/R level that it has shrunk from many days or until the price has busted out of the station. For an example look on the GBP/JPY chart May 14th through May 20th. You will see that the price is trading at a sideways channel from 202.41 to 205.00. I will not set any long transactions before the price breaks during the 206.00 level (maybe not 205.00) since I have a cluster of trend lines on my chart as a Don't Trade zone and short trades under 202.41.

To recap:

a) Spot a triangle pattern

b) Then search for the price to make a candle out of the triangle

c) Then wait for the price to break the closest strong S/R degree. This will be your entrance. Stop loss (S/L) should be set one S/R behind. Take profit (T/P) should be your next S/R. If the move is large I remain in the trade but trail my stop one S/R behind in case the price moves .

Hedging egy:

This seems all perfect in theory but the price sometimes does the sudden. Sometimes my T/P is not hit and also the price reverses back to my entrance degree. So, what I do is open a market position when I know for sure that the price is reversing. Example, if your take profit is set for 80 pips but the price reaches it is highest degree then reverses to within 10 pips of your entrance price it's a good time to open a market position. I rarely hold my hedge positions for profit but rather for reduction protection exiting the positions at rest even (B/E). Although you are able to hold your hedge position and close @ another S/R degree but make sure you close your first position to B/E.

After viewing a reversal pattern, I see the price and search for a break of the closest strong S/R level and follow step c) from above. Often times before a trend reverses the price will probably exchange via a sideways channel sometimes for a week or two more after a large move.

I'll share my trading rules within another post that produce The Breakout Method operate effectively.