Forex Trading Methodology Gene Ballard
Many traders like to pick highs and lows and try and predict what will happen next but this way of trading is doomed to failure, as its simply hoping or guessing. If you use the timeless methodology enclosed, you will catch every major move and it's very simple to learn and make big profits with...
If you want to get the odds on your side, you need to forget prediction and trade the reality of price change. There is no better way of doing this than buying and selling breakouts. All you do is buy or sell a valid breakout to a new high or low, on a Forex chart. So what is a valid breakout? Forex Trading Methodology Gene Ballard
A valid breakout is one that traders feel is an important level of support or resistance and general rules are:
- A minimum of two tests but the more tests the better
- If these tests are in different time frames, the level will be more important
- If these tests are wide apart, it adds more validity to the breakout
You are looking for levels that are physiological and the more uncomfortable the trade feels to take the better. Most trades simply cannot follow breakouts and the reason is routed in human psychology. Traders see a break occur but they have they think, they have missed part of the move, so they better wait for prices to pullback and of course this doesn't happen and they miss the move.
The savvy trader doesn't mind he has missed a bit of the move, he knows the odds are on his side and the move will continue, so he makes money and that's all he's interested in. If you look at any chart of a currency, you will see every major trend start and continue from breakouts, so it's a smart way to trade and puts the odds on your side.
Breakout trading will work, as long as markets trend. So of you want to win, trade breakouts and you can enjoy currency trading success. Forex Trading Methodology Gene Ballard