High Probability Trading Strategies are a Nice & Easy way to make Forex profits.
I'm going to share in this post 1 easy to use Forex trading strategy. This strategy will work on any time frame & I will share several examples.
High Probability Trading Strategy Rule #1 - Profits Are
All In The Preparation!
This will work on any time frame. The higher the time frame, the easier it is to find. But all you need to do really is draw one line.
What I want you to start looking for are big drops in price, or big moves upwards. The bounce off this region is NOT the trade so don't be hasty. It will be better if the bounce has happened already and is on it's way back.
Look at the image below so things are clear. (Click all images for better view)
You can see on this chart of the NZD/USD daily chart what I mean. From the left hand side of the chart we see a steep move downwards. Now we may not know why it dropped. It doesn't even really matter. But what happens next is important.
Price Decides To Stop At The Black Line. Why?
All we know is a steep down move occurred and stopped at the black line. I can't move the market like this and neither can you. But big market players can: and do so regularly. The important area for us now is where price stops from this bounce. Because this is where the maximum target is.
We see it hits the black line, bounces up and we now have a potential entry with minimal risk. And what I would advise, to be your max profit target. You can see from the chart, your risk to reward would be at least 4:1. But you don't need the whole move.
If you're starting out with this, I would say always aim for half. This way the odds of a winning trade are even more higher. You can see where price eventually went off to but this is not our concern.
To find something like this will only take you 5-10 minutes. The profits will be good for weeks if not months. I literally found all examples shared in less than 15 minutes.
Take The Trade!
AUD/USD 4 Hour Chart Example
Look at this example on a 4 hour chart which has several examples. One which happened a few weeks back also.
Again we see a big drop to the left and a pull back. As you should start to notice, the bigger the initial move, the more likely the trade will be a winner. We know our target, all we have to do is wait.
Price came back and again I would advise if starting out to trade half the distance. As you win more trades you will gain more confidence to take longer moves. What we see here again is price takes off much further than the initial move we would have been on. That’s OK!
The market is in an uptrend now and we see an extreme upwards move. So we draw another black line and wait for price to come back. It does one month later. And again, we have minimal risk here for quite a handy reward.
Consistency Pays Big!
All we keep doing is drawing one black line in regions where price has bounced off after big moves and we wait to take the next bounce. This is a simple Forex trading strategy which yields not so simple Forex profits.
I also highlighted the yellow box area to show you price bounced off the region again and is about halfway as I write this.
Currencies, Indexes & Even Commodities (Any Time Frame Remember)
This is a 15 minute candle chart of Gold.
We see the first extreme up move, so what do we do?
We draw the black line and wait.
The dotted lines in the picture are day separators, so you can see the next day is when price comes back. This was a $10+ price drop And for those who don't know, in terms of currency pips, this would have been 100 pips.
Again take half of the move: so you could have made 50 pips.
All this based on one black line.
This Even Works With Exotics!
I'm going to round up the examples by covering the CAD/YEN. I rarely go anywhere near exotics. But on longer term moves, I don't really mind.
We see here an extremely bearish drop here, right bang in the middle of the chart.
We know we don't have the power to move the market like this. So we know big players are. The level where they stop the market is the crucial level.
It bounces away from the 90.964 region and we now know to draw a black line in.
Price comes back to the black line a few weeks later and look at the take-off.
It is only a matter of days before price is more than halfway through the target zone. And you would be walking away with your big profits.
How To Trade These Setups
Notice there is no use of indicators here. You don't need them to trade. I am using my eyes. And drawing a black line at these levels and then waiting.
You can choose to set alerts at these regions. And if you are around you can take the trade live. If not just set an order and your broker will take care of the trade. You set your desired entry level, your desired stop loss & take profit. And you don't have to do anything.
For 5-10 minutes of analysis, you can make big profits.
I wrote this post to show you high profitability trading strategies exist, are easy to trade & You can risk small amounts of pips.
If you like the content in this post, I ask you do two things.
Share it with friends who you know will benefit from using a strategy like this.
And seriously consider The VintagEducation All In One Forex Course. I didn't hold anything back here. The course goes into more depth about simple Forex trading strategies, and also gives you the other lessons you need to put this all together and become a consistent profitable Forex trader.