Simple but Accurate Forex System

You need a simple system, because its very robust complicated
ones fail because they have too many elements to break.

Here is the logic of my system:

1. Look for Valid Support and Resistance
Yes good old trend lines then, check for a valid level - lots of
tests, in lots of time frames. Next I wait for the level to
break and new high or low to be made.

All the big trends come from breakouts and these are the moves
to go for.

Most traders like to wait for the pullback but they never get
in. By waiting for a better price they miss the move. Losers
don't go with breakouts winners do.

2. Confirm the Trading Signal
You then need to see if the odds are on your side with the
breakout so you check price momentum. There are lots of momentum
indicators to help you time your move and get the velocity of
price on your side. The ones you choose are a matter of personal
preference but I like the ADX, RSI and stochastic. If my
momentum calculation adds up I go with the break.

3. Stops
Stop below the breakout point and then trail the stop up behind
random volatility not to get clipped out I like the 40 day MA.
That's it! Simple yes of course but it works for me. The real
trick is being patient I only trade 1 - 2 times a month with
this method and to take short term draw down trailing the stop.

Adapted to Swing Trading
If the market is not trending, I adopt the strategy to look for
shorter term moves and swing trade i.e using momentum to trade
the moves between support and resistance. When doing this there
is no trailing stop, just a target.
This method was simply one I picked up from a commodity trader
in the late seventies and after trying all sorts of methods,
it's the one I settled on in the mid eighties and have used ever
since. It works on commodities currencies and stock indexes.

Is it perfect? No, does it make money longer term - Yes and good
money for the effort of 30 minutes or less a day.
I always get amused by people saying you have to keep updating
your forex trading strategy and keep a journal of losses and why
they occurred etc. To complicated for me! If I lost that's fine
you have to have losses to make gains and if the system isn't
broke don't fix it.
I have the confidence to follow it, as know its logic and
therefore have the discipline to follow it.

You can do it!
The above currency trading basic plan for profit will work for
you, if you want it to.
You just have to learn the logic, settle on your indicators and
you're all set to lock into the exciting world of global
currency trading.

If there is one area of life where you can keep it simple its
currency trading and the real key is to have the confidence and
discipline to follow your plan.

Source : http://www.learncurrencytradingonline.com/