This article will give a brief explanation of one of my favorite forex trading strategies. It is simple and extremely effective.  All it involves is a 1 hour bar chart and observing price action on the GBP/USD.  I refer to it as  the “4 hour Sterling Strategy”.

Here are the steps:

1. Open up a  1 Hour bar chart for the GBP/USD.

2. Wait the GBP/USD  has demonstrated “tight-range consolidation” for at least 4 consecutive hours.  By “tight-range consolidation” I mean that the range is very well defined, usually with no more than 50 (preferable) to 70  pips in the range (they will be very short bars on the hourly chart).You do not have to wait and watch by the computer the entire time. You can check in every few hours to see if a set up may be coming. 

3. When you identify 4 back-to-back hours of tight consolidation, you will continue to monitor the GBP/USD more closely as you will watch for a breakout from the consolidation range.   

4. If the price goes 7 pips above the upper range price, then go LONG.  Alternatively, if price moves 7 pips below the lowest value of the range, then go SHORT.  Don’t forget to adjust for the spread. So if your spread is 2 pips, for example, you would then use 9 pips above or below the range value to place your entry.

5. Set the stop loss at 30 pips. Set the take profit to 70 pips.

The GBP/USD is notorious for being a very active currency pair. The set up does not happen every day, but does happen on many days. The best time to find 4 hours of tight consolidation is during the US afternoon or during the Asian session.

I recommend that you demo trade this strategy for awhile. Back test it on your charts if you wish. You will likely agree that this easy strategy really works!

Have you discovered the forex strategies that are best for you? The “4 Hour Sterling” strategy is a variation of one of Avi Frister’s price action based forex strategies. Get more information on this strategy at Ann Pevey’s site FX Strategy Hub. You will also find more simple forex strategies and Ann’s actual “real-time” trading results!

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The foreign exchange market is considered to be one of the biggest financial trade markets currently. Because of this fact, more and more people are becoming more interested with trading foreign exchange currency in the hopes of making it big financially. While there are many people who have succeeded in the forex trade, there are still those who enter the field only to lose their investments. Now, with that kind of reality, how does one ensure that trading can work for him? One way to do so is to have the right forex trading strategy that can minimize losses and increase the chances of making profit.

It is understandable that people who join the forex trade scene wants to earn money. After all, foreign exchange is indeed a kind of investment that can lead you to better finances. Having the right forex trading strategy can bring you to a win-win situation where in all you have to do is to buy and sell currencies and wait for your earnings to come. While each transaction can be called a risk; you can increase the chances of making profits by having the right kind of forex trading strategy training.

There are many trainings that allow you to know the basics and the ins and outs of the foreign exchange market as well as the right strategies to apply at certain times. You can take advantage of the many training sessions being offered online and through these, you can be assured that your investment is safe.

Timothy Stevens is a Forex Options Trader who owns http://www.NonDirectionTrading.com – He has helped hundreds of people on Trading Forex with Options.

He has recently developed a free e-course showing you a step by step process for starting your Forex Trading easier. To learn how to start Forex Trading with Options without wasting your time and losing more money, visit http://www.NonDirectionTrading.com/members/FreeReport.htm

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This Forex trading strategy is simple to understand, easy to apply and catches the big profits from the really big trends in around 30 minutes a day. Anyone can learn this trading method quickly so let’s take a look at it.

Most traders never focus on the big long term trends but if you look at a Forex chart, there are trends which last for many weeks or months and if you catch these trends, with leverage on your side you can make huge gains.

So how do you get in on these great long term trends?

If you look closely at any currency pair, you will see that most of the big trends start from breakouts to new market highs and they also continue from them.

The way to make money therefore is to get on and hold the big trends, by buying breaks of resistance. It’s simple, its logical and it works but most traders don’t do it, before we look at how to make money at breakout trading, lets see why most traders ignore its profit potential.

The reason is simply most traders are obsessed with predicting the market in advance they want to buy low and sell high. When they see a breakout, they have missed the first part of the move and want to wait for a pullback to get in but the best breakouts don’t pullback and this trader misses the move.

The experienced trader doesn’t care about predicting or missing the start of the move and why would they? The best breakouts continue and pile up big gains, these traders are not interested in perfection, just making money and that of course is the aim of any Forex trader.

So what are good breakouts?

You can trade breakouts of any level which has been tested at least twice but not all breakouts continue in the direction of the break; the ones that do, are the ones which are considered important by the market and these are normally at least six tests, when breakout trading keep in mind the more tests the better.

You will normally get a few good breakouts each month and I know traders, who trade once or twice a month and earn triple digit annual gains and you can too.

Breakout trading is very low risk because your stop is always tight (just below the breakout level) so if your wrong, your out with a small loss and if the trend runs, the profit potential is huge.

Breakout trading can be done without indicators but we like to use a few to confirm price momentum is accelerating as the breakout occurs, to increase the odds of success and we will look at some of these, in the next article in this series.

As long as markets trend, breakout trading will work and make money. It’s so easy to understand and apply, that any trader can quickly put together a breakout trading strategy and make big gains in 30 minutes a day or less.

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Does the candlestick strategy deliver profitable results? They were initially utilized in Japan as far as six centuries ago to trade rice. These days, it is a well-known tool for forex traders to forecast trends and determine where the market is heading to. If you are able to perform a proper analysis of the candlestick, you would be opportune to win your trades.

Is the candle stick pattern the best forex trading strategy? Candlesticks patterns were first used in Japan six centuries ago in the Dojima rice exchange. Today, it has become a popular tool for foreign exchange traders to predict currency trends. The system provides data on past and present trading patterns that are used in forecasting the movement of various currencies.

Foreign exchange trading is a lucrative business for people that are very good at analyzing currency trends. Due to the emergence of several forex systems and software that are easy to access these days, many people are more opportune to involve themselves in forex market with or without experience. Candle stick pattern is an essential instrument which traders are using to strike big in the forex market.

If you want to use candlestick to trade, you are supposed to be conversant with the best way it works; that is you need a proper analysis of this tool. It could be one of the best forex trading strategies if applied the right way. You can find a lot of candlestick pattern but the ability to choose the best type requires deep thinking. As for the sets of people that use candlestick pattern before now, 30-minutes candlestick chart turns out to be more profitable and you should adhere to it before you place trades. There is need for you to make sure the pattern is dispatched accurately because you could lose if you are not able to get the right reading.

This is known as candlestick technique engulfing. It is believed to be consistent unlike other analysis, and most all it is very profitable. The word engulfing is known as a market condition where the present candle stick absorbs the preceding candlestick chart. The engulfing patterns comprises of the bullish and bearish engulfing rule. You can use the two patterns to know the direction a particular trend is about to head to, once you have finished analyzing it. The bullish pattern develops at the time the value of a particular currency is at its lowest position whereas that of the bearish pattern is seen at the time the value of a currency stands at its highest point.

How can you apply the candlestick pattern the right way to enhance your chances of winning trades? With the engulfing pattern, you would be able to know when the currency pairs are on it’s up or down position. This will give you an idea of the perfect time to place your trade. The most perfect moment is the time it, strongly, indicants the trend is moving out of its path. It is not a must that the trend must have moved completely out its pattern, but you must see a proof that the candlestick chart is certainly moving to its end position. In other words, you must have seen the candlestick develop to a small extent.

How do you know when to begin trading with the candlestick pattern? As soon as you observe a high candle being taken over by a low candle directly preceding it, it implies that we have an upward trend and a short term trade should be placed, this also implies to the downward trend. You need to do a good timing and a proper analysis in order to see you succeed with the candlestick pattern; it is the two factors that influence the candle stick to get better results.

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Regarding the Forex trading system, many people who do not own web-based businesses do not know what it is. Whilst trading has never been tough to comprehend, this is unique information and a lot of individuals are afraid to even give my fabulous system a go. Anyhow through the current article, we will assist you, and educate novices reading this about what my system represents, and the manner in which this could profit users.

So as to emerge successful, with my trading system, you will need to comprehend Forex trading strategies, and gain complete understanding of the ins and outs of Forex trading, in general.

To begin, probably the most useful achievement users might accomplish for yourself, in case one is considering embarking on this day trading system, involves accomplishing indepth study.

You need to examine all that is possible about strategies; this should hone all my readers, to transform into extremely profitable traders and make you extremely savvy about the trading system. Plus, you might gain recognition as an acknowledged authority on the Forex trading system.

On the web, there exist many lessons which clarify all that you want to understand regarding how the foreign exchange trade functions.

They would additionally explain, at length, regarding the diverse varieties of Forex orders that will be available to you. Additionally, in the classes, you will get information about the technical indicators and precisely what they mean, and additionally, all sorts of information about the indices traders will need to know.

Forex trading strategy lessons are additionally obtainable on the Internet; they explain regarding the numerous options and strategies you might have to understand, on your way to becoming a profitable trader.

When it comes to day trading systems, my readers, you’d want to be sure you do not begin handing out your hard-earned money prior to your completely comprehending the system.

A number of Internet-based companies make amazing claims of a turnover amounting to a small fortune, every day but although this is undeniably achievable after you go into systems, you want to make sure the system is understood throughly by you before you part with your hard-earned wealth.

Doing your research, gaining knowledge, and following all the classes rendered on-line, will not just change you into an improved Forex trader, but, in addition, you have the capacity to comprehend the system in a far superior manner, compared with anybody else who has not gone through the preparation you did.

Now that you have all the details, press on and try and find some more information on a few websites that you may want to sign up with! You have numerous websites that offer all sorts of deals and can truly set you up in Forex trading.

Many persons suspect Forex trading. That is mainly because they do not comprehend it. In case you have put in the effort and have learnt about the details of systems and strategies, you will face no difficulties at all making a small fortune on whichever site which you consider good enough to enroll in.

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