BEST FOREX TRADING STRATEGY 99% WIN RATE
Keep It Simple
Assuming you are knowledgeable about how to Buy and Sell in the forex market and you are looking for a simple but effective forex trading strategy that works. This not a holy grill strategy and but when you follow it strictly and stay within the rules, you should be profitable in most cases.
- Trend determination: change the candle time to daily or 4 hr time frame and identify the clear trend in the market. if you are not sure which direction the market is heading towards leave and find another market with a clear trend or direction. it could be up trend or down trend. Avoid consolidation periods in the market.
- Draw your trend lines: Draw your trend line to touch at least 2 points in the direction of the trend on the higher time frame. This could be an uptrend or a down trend. Just make sure the trend it clear and obvious. ie. in a downtrend we have lower high lower low movement, whereas in up trend we have higher high and higher lows. look for potential pull backs and take advantage of those levels.
- Drop one step down to a lower time from . ie if your analysis was daily. drop to 4hrs. if 4hrs drop to 1hr. if 1hr drop to 30min or 15 min. the look for pull back level or retracement. mark those level. Trace the retracement level back to see if that level was respected a couple of times. if yes, note it , if not ignore.
- Looking for entry. Sometimes the market may not retrace to the exact level you expect it to and that is fine. the goal is to be patient for the market or price to come to you. Do not chase price.
- Drop a step further to a lower time frame and look for entry and place your limit or market orders.
- Stop loss and take profit. Place your stoploss few pips above the previous high or low where the market retraces in the past and estimate a 1:2 risk reward ratio for take profit level.
Take Away
Beginning forex trading journey can be complex and very confusing when looking at the chart and you might wonder what is happening. The truth is you are not alone and many have tried to understand the movement of price over years and still are unable to accurately predict prices. Most of the time, your job is to determine the odds of the price going up or down and when the odds are in your favor then you call it a win or otherwise.
Many have tried to use technical indicators and fundamental analysis to predict price movement and that has also proven futile in most cases. Now the question is how do you trade in a market where prices are highly volatile and unpredictable most times. The strategy is to look for patterns which is popularly referred to as market structure. This takes into consideration, demand and supply zones, liquidity and break of structure. Understanding these three key term can help you understand the market and price movement.
In simple terms, when the price of asset is high, demand falls and when the price is low demand rises. This principle makes the market move in certain direction. These directions or phases are in 3 forms which are Uptrend , Down-down trend and Consolidation phase.
Uptrend is when market makes higher high and higher lows. this mean when the market makes a high, due to demand and price movement, it reaches a short term peak and call back to a level higher than the initial low where the movement began. It moves again past the previous high and create a new high and fall back again to a level higher then the previous low. in that manner.
Down Trend is the exact reverse of uptrend movement driven by supply zones.
Consolidation phase is where there price moves in a range , no higher-high or lower-low is formed until the price break out either upward or downward and begin to form trends again.
There are more than a dozen ways to trade any asset in the market, however the most important thing is for you to develop your own strategy, back test it over time and know what works for you.




