There are a number of ways in which Forex (Foreign Exchange) traders approach the market in order to turn a maximum profit. Large or small trendlines can be targeted, and these probably depend largely on the patience level of the investor. As long as the total output reaches the target level, it really shouldn’t matter what approach is being used. By looking for smaller movements in the price levels of a currency, it is a lot easier to locate one that will generate 10 pips — a moderate movement.
Like everything else in the Forex marketplace, a good basic understanding of the way the market moves will assist in this process greatly. Probably the simplest strategy to use by an investor is to seek out the major currency pairs (e.g. GBP/USD, GPB/JPY etc), and find the ones that are showing a strong downtrend or uptrend in the session under observation.
It is easy to check any of the charts to see where the indicators are showing movement either way. The smaller time periods can then be examined to find the perfect spot to dive into the market.
A currency pair that is showing movement on the hour chart and the quarter hour chart, should also be evaluated on the 5 minute one as well. Normally this is enough to establish a pattern, but speculators can validate this theory by checking for a slight downward turn before resuming the upward progression, as this is the best indicator that this is an established market trend will most likely offer 10 points in return.
There are a number of players in the market that use this specific strategy. This is due to the number of opportunities that will present themselves during the time a strong trend is showing on the charts. With a couple of other indicators to assist, this is a safe way to generate at least 10 pips each day from the market. Most speculators have their own special signs, but typically will use the same ones when employing this strategy in combination with the smaller target model.
To generate consistent profits in the Forex market is easy if investors follow the trend that is occurring and trade in that direction. As there are always opportunities available, having one or two good strategies available will lead to consistent profits. Anyone able to generate at least 10 pips each day can make their income from trading Forex.
Source by Hector Milla www.positivestocks.com