In this article, I’m going to look at some of the easy-to-spot trade setups and show you how to trade them for profit. Let’s take a closer look at price trading action with some simple settings and explore the logic behind why they work.
Here I am going to look at 3 simple setups that can bring huge profits to any trader, and you will see that they occur frequently and offer you fantastic low risk profit potential.
1. Trade when going from low volatility to high volatility
Forex markets are volatile, but not always, and you will often see a currency pair trade in narrow ranges from several days to several weeks, but this never lasts long, once the currency becomes more volatile – follow the volatility direction. takes you.
An excellent chart is a symmetrical triangle where volatility falls and the triangle gets narrower and expect a breakout from it. You will often see this chart forming and it is one of the most reliable charts to trade.
The logic behind the transition is that the supply and demand balance that was in balance has now changed, and the path to exit is either up or down. Once you switch from low to high volatility, the new trend is likely to continue.
2. Bull market reversal day
A bull market reversal is when a currency is in a bullish trend and you suddenly get a reversal – the market makes a new high and settles below the low of the previous days. Do not trade until the next day in case traders come to buy on the dip. Instead, before the next day’s open and see if prices decline, and if they do, go short.
The logic behind this trade is that purchasing power is lost after the market reaches a new high, and if it opens lower the next day, weak speculators will face a halt, leading to accelerated selling.
3. An escape that no one agrees with
Sometimes you see a breakout of the price through a critical resistance level, and it seems like there is no reason for this in the news and news, and all other traders are in a bearish trend. If you ever see a breakout of major resistance when no one agrees, buy the break and it will likely turn into a fantastic trend.
More than 90% of traders lose, so if they don’t agree with the break, they are probably wrong and it’s time to bid. The biggest and best trends very often come out of nowhere, and this has been the case throughout the history of trading. So don’t worry why the gap is happening – just trade profitably.
Above are three simple setups that anyone can find and anyone can trade profitably just by looking at the price action, they are simple but they will make you a lot of money.