As you read, you may notice that these simple forex strategies are different than how most people trade…. For pairs that are stuck in ranges and simple ranges within ranges I wait for a breakout. Sometimes a effective breakout occurs and sometimes the rate just keeps going an actual breakout. Whether a false breakout or actual breakout occurs does not matter. If a false breakout occurs I will use the false breakout forex strategy and in the event of an actual breakout the next strategy, trending, will present me with a trade. In terms of a false breakout, I want relatively short lived moves outside the range. Your personal trading plan should define how you will determine if the market environment is ranging or trending. For example, if the price breaks through the top of a range resistanceand then falls back into the range, system the range will continue and place a target for the trade just above support. Therefore, when a breakout occurs…wait. It will either keep going or simple back into the range. If it goes back into the range enter when the both the bid and ask are back inside the range. Pick a profit target based on support and resistance this is where the strategy can be individualized and place a stop just a couple of pips outside the recent false breakout simple. If the potential reward is not greater than the potential reward by a factor of at least 2: And again make sure the overall environment is choppy and not just a small range which has developed within a larger trend. Here is an example. At the time of this snapshot the GBPUSD had been quite choppy and for more than a month was stuck within a relatively large range and at this point, still is. Once the range is in place we see a false downside breakout on March 12 see arrow. Once the pair moves back inside the range, buy in this case and place a stop and a profit target. Upon looking at this range some may ask: Typically system place orders at the extremes of the range trying to capture the high or low. This can work occasionally but ranges are dynamic, sometimes falling short of former highs and lows and other time breaking out. Therefore, I prefer to either wait for false breakout or actual breakouts addressed next and just leave pairs alone while inside a range—especially pairs where the USD is involved. This means that strategy is infrequently used, but is included here because it provides a potential context for the next strategy, which is likely to be far more profitable. If a breakout occurs from a range, a trend may possibly develop. In the case of a effective, a long-term trend or a trend reversal the emergence of a new trend our evidence is the same. In case of a uptrend we need to see a move higher above a former high a pullback which stays above the recent swing low, and then a move back higher. That provides sufficient evidence for me effective enter a long position be aware of trends on multiple time frames. Therefore, I only buy uptrends on pullbacks that hold above support and then start moving higher. For this I use trendlines or the last major swing low price. My stop is below the recent low and profit target will system but is usually just beyond the former higher can also use trend channels to gauge profit targets. Entries are based on the market pulling back and pausing, then an up bar moving above the high of significant down bar which occurred recently in forex decline. This is not catching forex falling knife. We are trading the simple and watching for a move that indicates the trend is continuing after a pullback has occurred. Another entry method could the High Probability Forex Engulfing Candle. The USDJPY was locked in a range from June, to January of until it finally broke out. A trade or two may have been made on a false breakout but the pair ultimately kept moving higher. We now have the first criteria for an uptrend—higher high. We wait for a pullback and it found support above a former low higher low. Now we are looking for a long entry as soon as the price begins to rise again Note: Two entries pop up and are marked by the arrows. Long on Feb 29 and March 8. Both these days were green bars which showed the pullbacks had ended. Entries can be individualized and based on effective own indicators, candlestick patterns or price action. Exit slightly beyond the former major high, or if a trend channel can be constructed, use that as a guide for placing a profit target. Get your copy today. Simple Forex Strategies — Summary These two simple forex strategies present a template on which to build your own, individualized, trading strategies. Both methods require a lot of patience system discipline in that the strategies require doing the opposite of what forex people do. The trend strategy is the most important because that is where most of the money is made. But traders should also be aware of the range strategy, as markets are either trending or ranging. Being aware system both allows the trader to switch strategies at the right time and implement the right strategy for current conditions. By Cory Mitchell, CMT. Effective and Simple Forex Strategies Posted on March 26, by Cory Mitchell, CMT. FXopen Upon looking at this range some may ask: Simple Forex Strategies — Effective Trading If a breakout occurs from a range, a trend may possibly develop. Sign Up for Our Free Trading Newsletter. How to Day Trade Stocks In Two Forex or Less Extensive Guide How Much Money Do I Need to Trade Forex? What's the Day Trading Success Rate? The Thorough Answer Why Most Traders Simple Money and Why forex Market Requires It. 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