An Easy Forex Trading Strategy
I have been asked many times ‘How difficult is Forex Trading?’ ‘Is it Easy?’
‘Can Forex Trading really be Easy?’
So I thought I would collate some trading strategies so you can see my charts and a strategy you can use. Its up to you to find the right strategy for you to maximise your profits and minimise your losses. Most people find the hardest thing to do is to press the buttons to enter and exit a trade. This is why most people find Forex trading isn’t easy – emotions get in the way!
The following chart explains a strategy I trade with entry and exit points – the idea being that you really do enter when your strategy tells you! This chart might make Forex trading appear easy – as with most things…its easy when you know how!!
Bollinger Bands and RSI Easy Forex Trading Strategy
OK – so this strategy uses Bollinger Bands and RSI oscillator with support and resistance levels. I like Bollinger Bands as they provide a good visual indication of general sentiment with confirmation coming from the RSI.
As you can see when RSI hits the 30 level this indicates an oversold reaction – in other words the GBP/Cable has been sold off and is now under-valued. You can see the same price movement on the chart with the shadows of the candlesticks hitting the support level 1.
The trend changed and GBP strengthened against the USD…by approximately 100 pips – not bad!!
An easy Forex trading exit strategy would be when the RSI crosses the 70 level and shows a downward line indicated by the price reversal on the candlestick chart.
This chart in particular is interesting as if you notice there is also a divergence of the RSI and candlestick chart. This indicates a potentially big move. Normally, if the chart shows an uptrend whilst the RSI oscillator shows a downtrend a bearish move can be expected. A few hours after this screen shot was taken the GBPUSD declined further to the 1.5700 level!
Add these two features to your charts and see how you can profit from this relatively easy Forex trading strategy.
To Your Success!
Best Wishes
Annabel
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