Forex Trading Tool Trendlines and Pivot Points Strategy That Makes Winning Trades For Beginners

Given that you understand, Currency Trading is a great route to have cash flow. But having the proper way to trading Currency exchange is really important. You could waste your dollars if you don’t have a process ready. Here will be good ideas. able to trading Foreign exchange effective.

Are you new to Forex trading? The best way to success is to follow those who are already making lots of money. Forex trading tools of the wealthy traders are something you need.

There are no Holy Grails or Silver Bullets in trading. However, there are methods that do constantly make more profitable trades than not. If youve read any of my publications, youll know that Im not a huge fan of manual trading. With that said, there are a few methods that some successful traders use. One of these tools are called trendlines.

This tool alone will not work. They need to be used with other indicators. When a group of signs come together, you can visually see that its time to make a trade or to exit a trade.

The Trendline Pivot Point Method

Before we begin, you need to have a basic understanding of how trendlines are drawn. Heres a brief overview.

When a currency pair trends up or down, it makes peaks and valleys. It never goes in a completely straight line. These peaks and valleys made by price fluctuations are where you draw your trendlines. When the trend is down, you draw your trendline on the peaks and on the valleys if its trending up.

This method requires you to draw trendlines on two different charts for one currency pair. One will be drawn on the 15 minute and one on the 1 hour chart.

15 Minute Chart

Look to see if there is a currency pair that has a clear trend either up or down. If you find one that is trending down, find the last two peaks in prices. Make a trendline using these two points. If its trending up, use the last two valley low points.

60 Minute Chart

Now you need to do the same on the 60 minute chart as you just did on the 15 minute chart. Drawing trendlines on the recent lows or the recent highs depending on which way the currency pair is trending.

Pivot Points

Now, draw pivot points on the 15 minute charts. This is where you will be pinpointing your trade entry.

Trade Entry

Lets say that the EUR/USD was trending down. You see price break through the trendline on the 1 hour chart. Now you watch the 15 minute chart. Price punches up and through the trendline. It then goes through a pivot point that is no more than 5 Pips away from the trendline break. Now you enter a trade to buy. If price was trending up, its very similar. You wait until the trendlines on the 60 minute and 15 minute charts are broken and price also punches through a pivot point.

The most important part is to determine the trends. Dont try to force it. For this strategy to work, you need to have some nice, easy to see trends on both charts.

These trades dont happen all the time. You may find only a few a week. But when you do, you can capture 20 Pips. The way to maximize your profit is to add more lots. I would also use trailing stop loss orders on half of the lots in case you catch a nice long price movement.

As with any Forex trading tool, you must be very patient and very cautious. Dont ever try to force a trade to happen. Either the setup is there or its not. Looks for obvious trade setups and never deviate from this.

These simple trendlines and pivot points together with trading the trend can make you some nice profits. These Forex trading tools may make the difference between success and failure as a trader.

Hector Bretons passion is trading by using Forex trading tools. He has helped many decide the best way to trade on the Forex market. Find out what he recommends as the only proven method to trade at www.automatedforexsystemtradingblog.com.