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Wednesday, March 7, Learn Forex — Make Your Forex Trades Profitable from the Beginning. Although the use of channel breakout analysis proves to be a very profitable method of trading forex, it suffers from a deadly flaw. If you are forced out of the market by the exit indicator, which is essentially the day-low, your loss potential can ttforex huge.

Your exit point is potentially far away from your entry point. Remember that I mentioned about forex risk management quite earlier in this series of articles, your desired loss limit should not exceed 3 percent. The wider the range between the exit and entry point ,the smaller the position you will have to take. Therefore, the first modification we are going to add to the channel breakout analysis is to use the denial rule, utilizing other indicators so that we can exit the market earlier than it touches the bottom.

And this rule is very simple to follow, for even starting forex traders. If the price does not close above the breakout level for the first two days after you enter the trade, which is triggered by a 60 day high parameter, then you simply deny the possible the trend and ttforex the trade. The underlying principle ttforex that sometimes the market gives false breakout signal. This is not unusual in the forex market ; we often observe that the price of a currency pair rallies and then quickly drops off the cliff.

It may happen because the market is not ready and refuse to take it. The bears will take the market and drives down the price quickly. It even aligns with what the forex traders typically refer to as instant gratification. Quite a lot of forex traders report that their profitable trades come ttforex the ones that make money from the very beginning. Applying the denial rule to your forex trading strategy, because it betters the channel breakout analysis to a large extent.

Posted by myforextrade at 8: Share to Twitter Share to Facebook Share to Pinterest. Learn Forex — Forex Trading Strategy Channel Breakout. It may sound an overstatement that channel breakout is the best forex trading strategy. However, it is the most widely accepted profitable forex trading strategy and used by quite some successful forex traders who like to take the trend of the market.

The concept of channel breakout is not hard to understand at all. Actually, this is the classic four week rule FWR. The practice is very simple to ttforex as well. The day-high is simply the highest price for the last 20 trading days four weeksand you reverse everything for ttforex day-low. Whenever the market makes a new 20 day high, the order you ttforex will be filled.

And you short the same currency pair at day-low. And ttforex essence lies in here. You always need to remember shorting the day-low when your long order is filled, which means you have two short orders to be filled. The reasoning is that the initial short order will counteract your long order, therefore, you need to ttforex another order to prepare to enter the market when it gets bearish.

We will talk about the improvements made to it the next few times we meet. Learn Forex — Forex Trading Strategy Channel Break About Me myforextrade View my complete profile.

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