Guest post by forexfool56 of TheForexForum.net
With the currency exchange market open, 24 hours a day and 5 days a week, it can be nerve racking to try to keep track of every possible good trade. This is even more true if you are in a time zone that is usually sleeping during the bulk of the London and New York sessions. Why try to keep track of so many movements when you can just sit back and look at the bigger picture?
Like many of you, I have a full-time job and love to trade forex. Some of you may be like I was, constantly glued to your MT4 app looking at prices and opening trades for 1-4 hours at a time. That that type of trading caused a lot of unrest and distractions in my life.
For those of you looking for something less noisy and just as satisfying, try this low pressure, lower volatility forex strategy.
Use Weekly and Daily Charts; avoid the noise and the need to be in front of the screen all day.
Draw Trend Lines; these lines should be legitimate and carefully thought out. They will be the key factor in many trades. Make sure that trends are at least 3-6 months old and have about 3 touches. The older and more touches the better!
Look For Entries; these are usually where the trend lines meet your favorite indicators. Pivot points, moving averages, relative strength index and resistance/support levels.
Place Buy/Sell Limits; at the carefully thought out entries you have found.
Use Smart Money Management: don’t risk too much on any trade. Generally, 1-2% is recommended by many experienced traders.
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