If you follow the guidelines outlined in this article and implement the approach as instructed, I am assured that you will be able to make consistent profits month after month. This is a simple yet highly profitable forex trading strategy. The focus of this strategy is to cut our losses short and gain as much as possible.

The main driver of this strategy is the Higher Returns and Small Losses. Also, when developing this trading strategy we followed the popular term KEEP IT SIMPLE STUPID. Hence, all the trading signals are generated by the trading system and all you have to do is to place your orders and manage them according to the rules of engagement.

In this trading strategy, we use 50 simple periods moving average to determine the market trend and use bullish and bearish engulfing candlestick patterns to get into trades. Basically, when trading this strategy, after determining the trend, we will ride that trend to gain as much as possible. Also if the trade is not going in our favour, then we immediately cut the losses.

For example, have a look at the charts below. It represents how a profitable trade and a losing trade looks like. With these kinds of returns, achieving consistent monthly gain is simple. For extra clarification, have look at the excel screenshot of our trading journal. It represents how the profitable trades and losing trades are distributed.

In the above chart, we got a total of 15 trades. Among them, we only had two massive 60 PIP winners with some small winners and all others were losing trades. That is the beauty of this trading strategy. Now I hope you got a brief idea about how this simple profitable forex trading strategy is going to work. Personally, I am a huge believer in keeping things simple.

First, head over to tradingview. com and open a free account. Then follow the below video to set up your tradingview chart. Ok, Tradingview is now ready. But from which platform are you going to place the trades? Also, we are using a Minutes timeframe for this strategy. So make sure that you are on the right timeframe. If you want to make a consistent profit each and every month, you need to take control of your emotions. Related: How to Control Emotions Ups and Down When Trading Forex — Trading Psychology.

Since we have tremendous returns in this trading strategy, these small emotional problems will not be big deal. Consider this: even if you have a poor win rate, you can still be profitable due to the higher risk to reward ratio. So you can be a calm trader since the win rate cannot bother you anymore.

When it comes to this trading strategy, the main objective is to decrease the size of losing trades while simultaneously exponentially increasing the gains of winning trades.

When trading the forex market, Losing trades is one of the most common market events that can harm us, right? Due to the higher risk to reward ratio, losing trades cannot hurt you anymore because you have a gut in your exponential higher returns. This is a significant step in the direction of becoming a successful trader. As you know, our trade entry is bullish and bearish engulfing candlestick patterns, and the best thing is, you have nothing to do.

Every trade signal is generated by itself in the chart, so just relax and execute. We have three types of trade entries in this simple profitable forex trading strategy.

This trade entry technique was developed to catch the trend early as possible or in another word, I can say that this is the first attempt to catch the trend.

Basically, we are waiting for bullish or bearish candlestick to break the 50 Simple moving average. Have a look at the marked area in the above chart yellow circle.

On there we can see that a strong bearish candle closed below the 50 Simple Moving Average. This is what I call initial breakout entry and this is a bearish trade signal. In the next chapter, we are going to talk about how to manage risk Setting stop-loss and cutting losses. On the marked area in the above chart, you can see a bullish engulfing candlestick pattern break and closed above the 50 Simple moving average. This is our buy trade signal.

Now, what happens if we do not get bullish or bearish engulfing candles when the price break the moving average? What happens if it is just a regular candle? Which is…. I use this trade entry technique if I were unable to get into the trade on the initial break of the moving average.

In here I wait for the market to slow things down after the initial break of the moving average, then like the previous example, I use bullish or bearish engulfing candlestick patterns to execute the trade. But we did get a bearish engulfing candlestick after the break and pullback AKA after the breathing stage,. Now here we consider the marked pullback as the breathing stage.

Click here to check it yourself. Swing trading is a strategy used by many traders to earn from a free trade within a few days or weeks. To maximize earnings from a currency deal, swing traders maintain positions longer than day traders.

As a result, they blend technical and fundamental analysis to capitalize on long-term trading possibilities. Swing trading has relatively large capital requirements, making it less accessible to traders. Nonetheless, as a beginner, you learn to mature over time by employing this method. Swing trading helps you to assess the market before making a trade decision. Swing trading is an excellent method for novices.

This is due to the fact that you can begin trading without prior expertise and learn how to combine technical and fundamental analysis. But, can we be totally honest with you? Swing traders often miss longer-term trends in favor of short-term market moves.

Let me take a wild guess. You are wishing for a Swing trading indicator that helps you earn profit…. And you know what? And these high-probability trade setups are often followed by big market moves. So you can be confident entering a trade. You are now stress-free with no doubt and no uncertainty.

Still not convinced? Click here to see it in action. Momentum trading is focused with the strength of a trend rather than the trend itself. This method assumes that if a trend is strong enough, it will continue in the same direction either upward or downward.

If you employ this approach, you will open your position when the trend gets momentum and close it when the trend begins to decelerate. Volume, volatility, and timeframes must all be considered when determining momentum. The momentum indicator, RSI, MAs, and stochastic oscillator are prominent indicators for this method.

Finally, market sentiment has a significant impact on momentum. News and economic events, such as interest rate announcements, can have a significant impact on FX pricing.

When a trend is gaining strength, a big number of traders often enter the market, implying even more momentum. But you know what? The data is suggestive of two major problems with momentum. To solve this problem, we offer you: Natural Momentum indicator. This Natural Momentum indicator predicts when the market is slowing down, and when the trends are about to change. By using natural logs in its algorithm to evaluate all relevant past market data. Identifies high-probability trade setups, thanks to its sophisticated real-time calculation.

Weeds out many false signals, by using TEMA formula to filter market noise. Can this really be true? Yes, it is. Click here to see how it can work for you. What features does it acquire? The three most significant characteristics of an effective trading strategy are as follows:.

Indicators with the least lag. The less lag there is, the more accurate the forecast. Forex trading strategies that are successful do not use lagging indicators. It is critical to understand the fundamental concepts of your trading strategy. Becoming an expert in a simple approach is preferable than a complex plan. It is important to comprehend your forex trading approach.

Multiple moving averages can be loaded into the same chart. High Accuracy Renko Bar Chart Trading System. I will tell how to Correctly Identify Forex Trend with Renko Bar Chart Trading System — You might be familiar with renko charts.

So while you might find renko charts to be different in their appearance, they have a unique capability of showing you the trends as well as help you to easily identify support and resistance levels.

The momentum indicator show trend by remaining positive while an uptrend is sustained, or negative while a downtrend is sustained. A crossing up through zero may be used as a signal to buy, or a crossing down through zero as a signal to sell. How high or how low when negative the indicators get shows how strong the trend is. The conventional interpretation is to use momentum as a trend-following indicator. This means that when the indicator peaks and begins to descend, it can be considered a sell signal.

The opposite conditions can be interpreted when the indicator bottoms out and begins to rise. High-Probability Forex HolyTrend Stochastic Trading System — Most recommended and high accuracy trading system to Buy the Higher Low and Sell the Lower High in forex market.

Trading in the direction of the trend and buying low while selling high are mutually exclusive. Because we recommend you locate the direction of the trend and find a good entry, this is a new concept for you to consider. Buy the higher low and sell the lower high. This trading system will provide you with methods to do just that to prevent you from catching a falling knife.

One trader will be right and the other will be wrong if they entered at the same price with similar stops and limits. Forex Trading System with a smart and reliable indicator of the trend lines True Trendline.

MA TrendLine is highly accurate trend following forex strategy. The system gives you clear signals which will definitely help you to make best trades. The chart looks very clean and professional. Forex MA TrendLine can be used to trade in any time frame with any currency pairs but make sure that you are trading in a trending market not flat.

Trading, gaps are important because there is a wide belief among traders that gaps are usually filled quite quickly, for Forex traders this provides an opportunity to make a likely profit because the most likely short-term direction of the price can be successfully predicted. Trading using a Forex gap can be a profitable venture if you have good know-how. Thus, the gaps are important in the trading system. And traders completely believe that gaps are filled quickly, and it also makes Forex traders profitable.

For an instance, a gap can take place between Friday close and Sunday opening in the Forex market. It is a simple trading technique where the basic assumption is that the market will fill the gap. This kind of trader observes as a simple and profitable strategy because if the price gaps are up, traders sell, and if the price gaps are down, traders buy. It is not a modern strategy. In all types of investments, this gap strategy has long been use.

Compared with other Forex trading systems, this gap trading method is completely profitable. If there is no change in price, then there are no gaps. Of course, there are various approaches to gap trading, but the following techniques are the most preferred ones. The well-known approach to Forex gap trading is to believe that it will be getting fill sooner.

The traders should enter the trade when the gap shows up and focus on some point within the Forex trading gap. While few traders target a large portion of the Forex gap as a sanity check, others focus on the entire gap. While trading, it is important to do some experiments and testing to determine where to set the stop loss.

As a Forex trader, you should set the stop loss at a previous level of resistance or support. A Forex gap will, in general, get fill because of the need to bring cost price into the balance; there has occurred a huge irregularity. It is a completely new trend where the asset gaps from the usual price pattern. Usually, the gap triggers are breakouts. If a gap is going along with the higher trading volume, it may take a long time to make the breakaway gap. There is also a position short for making the breakaway gap down.

Another reason to do Forex gap trading is to make the trade after the Forex gap is fill. Few Forex traders believe that it will act as some support or resistance. In such cases, observations suggest that Forex prices will keep moving in the direction of the Forex trading gap. Thus, the traders have to wait so that the Forex gap can be fill before beginning with the trade.

This model turn out to be well, and Forex costs soar back up after the Forex gap was fill. It shows the acceleration of the bearish pattern in the same direction. Due to the sentimental news and also furthers the trend. There is another gap known as the Exhaustion gap, these kinds of gaps make the final gaps in the trend direction. After some time, it will get reversed. More than a physical gap, cost essentially moves rapidly through a price range.

This is very famous among the Forex gap traders. Since there is a price observe throughout the price range, this results in creating a Pseudo Gap. When the Forex price returns to this zone, it can rapidly go through that price range.

If it takes place, the gap trading after the genuine gap was fill, cost proceed upward to Pseudo Gap. When cost return downwards, that pseudo gap region was fill rapidly. Like Real Gaps, the Pseudo gap likewise tends to do filled. Since the price action related to this kind of gap is less unexpected, the fill should have less power. At the end of the day, it depends on the trader to choose the Forex-gap trading technique which best fits him.

One of the best ways to make sense of it is to learn various frameworks, back or forward, test them, and determine the ideal technique for the trader. Forex is not a small market to take place within a vacuum. Continuously consider current monetary and international conditions, just as up-and-coming new declarations while engaging in Forex gap trading.

When you become familiar with a technique to test, practice again and again to gain proficiency. This post highlights the methodologies that you can use to do Forex gap trading.

Visit us on: www. Skip to content Search for:. What is Forex Gap Trading Simple and Profitable? Gap Fill The well-known approach to Forex gap trading is to believe that it will be getting fill sooner. Breakaway Gaps It is a completely new trend where the asset gaps from the usual price pattern. Runway Gaps Another reason to do Forex gap trading is to make the trade after the Forex gap is fill. Forex Gap Trading Simple and Profitable.

Like this: Like Loading The Advantages of CFD Trading. Can You Make Money from Forex Signals.

If you would like to keep up on the latest trading news and best deals, come by and connect with us:. Start Trading Forex. Non-necessary Non-necessary. Price action is regarded as a representation of price movements in the market. MT4 indicators MT5 indicators Tradingview indicators Dashboard indicators. News and economic events, such as interest rate announcements, can have a significant impact on FX pricing.

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