At the start, everyone struggles to know what a simple Forex method is. And even if they come across a few, another doubt pops up, whether it will be profitable for them or not. With time, dedication and loads of practice, things get clearer, and you find the strategy which works for you in any given market condition.
Every single profit you earn is a paycheck of the hours of stress, hard work and sacrifice you give in. This is the mindset which most traders lack early on in their career.
They want profits with less effort. But profits only come to them who are ready to sweat it out with hours of staring at their screen. Winning is potentially achievable, but it is never easy. And those who are willing to learn everything about the market and each of its variables have the ability to procure a substantial quantity from its treasure trove.
One simple Forex method which serves utility for many neophytes:
Price action is being able to interpret the market price fluctuations every day on a naked chart. Though it is a great strategy on its own, it involves a few appealing variants.
i. PA trending markets strategy:
When using this strategy under Price Action, you will have to know one thing- the market is not always trending. And to find them out you will have to read the charts properly.
Usually, markets have the tendency to move towards the direction of the trend. And soon enough it retracts from that point and reaches back to its value area. In experts words- it is known as Support and Resistance points.
As a simple Forex method, the trick is to check out for the Price Action chart set-up properly post the market retracement. That will present you with proper risk reward possibility on the trading chart.
Say you are seeing the GBP USD undergoing a nice uptrend. And as the market retracement takes place to its nearest Support Level within the uptrend, your pin bar chart initiates a buy signal. Judging by Forex and Price Action basics, this is a favorable situation for those want to get into it.
ii. Range-Bound PA strategy:
Markets to a certain extent have become range bound a lot in recent years. And with no intentions to create controversies here, most indicators fail when a market moves from trending to a range-bound scenario.
As a result of this, most of the time, you will need to sit on the sidelines waiting for the market to consolidate its position.
This is where this PA simple method trading Forex comes in handy. It clearly points out the Resistance and Support points and witnessing it; you know where to draw you attention primarily.
A simple Forex method is what experts’ state the best regarding efficiency and reliability. And when one speaks of simple strategies, very few match up to the transparency and countability of Price Action. So for starters, make use of these two ways to trade currencies and better yet, test it out in demo trading accounts. This will make you clear about using them properly, and it will also instill the confidence you need to win big.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.