Welcome back Traders! Hope you had an awesome trading week…
I am sure that you are going to love today’s article. I will be revealing one of my long-term strategies and I know that all Forex traders, including myself, are especially fond of trading strategies. This is a very simple yet highly effective and profitable trading strategy.
Best yet: I will be giving away all the details of this strategy for FREE of charge. That is the kind of thing we do here at Winners Edge Trading!
I do have one favor I want to ask from you…
In exchange for the free strategy, I would like to ask you if you could take the time to write a comment down below… I would really appreciate that!!
Also, don’t forget add us to twitter. We send our great content day in day out so it would benefit you tremendously. https://twitter.com/@winnersedgetrad
The Million Strategy
At Winners Edge Trading we know that some of you who are reading this eBook do not have hours and hours a day to track the Forex market. Everyone has busy lives and full schedules.
This strategy is going to focus on long-term trading so that the method Is beneficial for everyone.
But it is important to realize that the strategy is actually useful for all types of traders, from swing traders to day traders, but even intra-day traders can benefit from the knowledge.
First thing you need to do is check out this long-term trading strategy article from Nathan called “long-term-trading-strategy-for-forex”.
Now that you have done that, let me tell you some more details.
1) Because the strategy is classified as a long-term strategy, it was obvious that it needs to be an “end of day” strategy. So we will be using the day and weekly charts.
2) Also, we really didn’t want to create something that takes a ton of time to analyze. So another requirement is that the strategy uses very simple methods.
My mission succeeded: the strategy only requires a few minutes of your time every day and is straight forward.
Here is an example:
That is all a Forex trader needs. As you see the chart is very basic:
1 indicator (fractal indicator).
Because in a way, the only aspects Forex traders need to care about is where do I enter, where do I set my stop loss and where is my take profit? And that’s it!
This strategy answers all 3 questions quickly – without having to stare at your screens for 24 hours a day. This free Forex trading strategy meets all these criteria and more:
- It only takes a few minutes a day to monitor the potential setups and any actual trades;
- It requires none or very few indicators as to keep the chart simple;
- The strategy is simple and straightforward;
- The strategy is effective and profitable;
- The day chart is used as to allow for end of day trading decisions.
The motto of our company is providing you an edge, a Winners Edge, and by reading this strategy article you just created that edge for yourself.
Before we dive into the exact details of the strategy, I need to make sure that everyone has a certain understanding of Forex trading. So I want to share with you a few links. Please read the ones that are valid and interesting for you:
It is a very powerful trading system that will be a great addition to your Forex trading arsenal.
Please read on for the details of the trading plan. In the next part you will be able to discover the ins and outs of the setup, entry, stop placement, and trade management.
The ABC of the strategy
First of all, the strategy is feasible and useable for all major currency pairs and major crosses.
The currencies love to move in cycles, patterns and waves from level to level. As we all know, there are many kinds of levels in the markets: examples vary from trend lines to consolidation zones.
Lows and highs are also examples of key levels. Their big advantage is that their numbers are clear and straight forward leaving little doubt and room for error. A day high will remain a day high no matter what. There is no doubt about their validity and are very easy to use for any measurement or strategy.
PLUS the big advantage is that BANKS use these levels as well. One simple word of advice from trader to trader is: avoid going long close to a daily high and going short close to a daily low. But this is not the strategy of course.
The next step in the process is… creating an edge. And not such any kind of edge…
The Winner’s Edge
That edge will be created via our filters. You might be asking yourself: why do we need a filter?
In fact a trader could take a trading decision based on every single candle. But is it profitable?
Most likely not! That is why we are releasing this free Forex trading strategy guide book.
A filter makes sure that we only trade upon a certain set of conditions, which gives us Forex traders that edge.
The edge we are looking for in the strategy is to catch a currency when it is
a) either going to make a trend continuation or
b) either going to make a substantial trend reversal.
In other words, this strategy is aimed for finding turning or continuation spots on the day chart.
That sounds very simple… and it is.
Before we move on, make sure to read these vital articles:
The Juicy Part
So now you might be wondering, how do identify those continuation or reversal spots within our Forex strategy? We thought you’d never ask!
We can measure a pause in the market by monitoring the highs and lows of the day candles and keeping track whether and when it fails to make a new candle high or low. If the currency fails to make a new high or low, it equals a minor resistance or support level in the market.
Here is the definition:
In an uptrend a pause of one day (no new daily high) is equal to a minor resistance;
In an uptrend a pause of two days (no new daily high) is equal to a major resistance;
In a downtrend a pause of one day (new new daily low) is equal to a minor support;
In a downtrend a pause of two days (no new daily low) is equal to a major support.
These minor or major resistance and support levels are great trading opportunities, because they indicate either a potential trend continuation trade or a trend reversal setup.
Now we have formulated the definition of a trend:
A trend is when the currency makes new highs or new lows;
A temporary halt of the trend is when the currency fails to make a new high or low.
At this stage I advise you to read these great articles before continuing:
Catching the Pips!
You are probably wondering how do we catch the pips! Hang on for the ride traders! This is a great Forex trading strategy so you will not be disappointed.
First thing we need to know is that; a failure to post a new candle high or low means that the power in the currency was not sufficient to push the price to new highs or lows.
Basically, this could translate into two scenarios:
The currency is pausing for continuation of original trend direction;
The currency is setting itself for a reversal.
The great thing is, Forex traders can profit from both directions!
That is the best thing about Forex trading. There is earning potential both ways. So no matter what, Forex traders can capitalize from movements on the Forex market: up or down.
As you can see in the example below, the currency kept making higher highs and higher lows and made a fantastic uptrend (indicated by the green circles). The triangles within the green circles are an indication when 2 day candles did not post a new high or new low, aiding visual ease to identify a string of highs and lows – in this case higher highs and higher lows.
Here below is another example when the currency kept making lower lows. There were several pauses and 2 day candles could not post a new low. After a small retracement the currency continued with its down trend.
So far we have covered all the basics. Before we dive into all the details of the actual trade setups and trade management details, I need to make sure that everyone is clear on the following matters as well:
4) Forex income;
That concludes part 1!
Make sure to keep an eye out for part 2, which will be released next week Friday on May 24.
We are going to discuss the Forex strategy in great detail:
1) the with the trend trade setup
2) the counter trend trade setup
3) the filters
4) where to place entries, exits, take profit
5) trade management
Then the week after we will release part 3 of the Forex strategy (Friday June 1) which will provide some great bonuses for this strategy and will be the extra cream on top of the cake!
Once again, I would truly appreciate your feedback on each of these articles!!
Hope you enjoyed it, and make sure to read the next 2 sections which are going to be AWESOME.
Wish you Good Trading today and a very great weekend!
Oh and here is that twitter account: https://twitter.com/@winnersedgetrad
Winners Edge Trader, Writer, Educator
Latest posts by Chris Svorcik (see all)
- How to Apply Technical Analysis Step by Step - November 25, 2014
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