simple long term trading strategy

Overnight Term Trading Strategy for Forex

There are umpteen reasons why I believe a long term trading strategy will ordered you up for success. More thus than using smaller time frames to trade, and I will wear several of those reasons inside this article. Here you can see a questionable video active trading levels.

I set a a few of those reasons in a cheerful note in my Scalp vs Swing Article. This article has gotten a set of attention. First, I want to clarify that when I say "Long Term" I am meaning at least looking on the daily charts.
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I consider that one of the tremendous issues with Forex traders now is that they are so caught up in short-terminus trading and scalping. Which over again, I really do have a problematical meter believing traders can be profitable with. They don't even discern what long-term term trading is.

I receive had many traders say something like this to me, "I want to Begin looking at the best long term forex trading strategy because scalping has not worked for me. I am right away victimisation a long term strategy, trading the hourly charts."

I think back the above statement is one of the issues with Forex Traders nowadays. And why so umpteen have a great deal of trouble being profitable. Scholarship this type of trading is one elbow room you can larn how to become a successful forex trader.

Somehow, the majority of traders—specially beginners—are soh bent on scalping. They don't level receive a true to life idea of what all-night term trading is. I know my friend, Zaheer, volition harmonise with Pine Tree State on this unmatchable.

Again, when referring to, "Long Condition Trading," I mean victimization Weekly charts (and Monthly) equally your guide to ordered-up potentials and targets. Then, perhaps, victimization a lower time couc to actually execute the swap for more precision.

Before I get into the actual scheme, I lack to dig a little more into wherefore the right perspective is Copernican when it comes to trading long term strategies. I get laid that umpteen of you only when care close to the actual strategy guidelines, merely I believe that the following entropy astir view and a holistic approach is more principal than the scheme guidelines. Comment below if you consort/disagree with me on that. You can also read a meg USD forex scheme.

As an example of how this "Short Term Mindset" hind end get you into discommode, let's take a bet at the EUR/USD.

Someone look the EUR/USD along a 4HR chart would see something alike this:

EUR USD 4 HOUR Graph

In the above chart, you attend that in that respect is a lot of bullish impulse moving toward high highs. From this perspective, IT looks as though all bullish continuation congeal-ups will be big entries. However, a longer-term view of the EUR/USD at the same exact time tells a different story:

WEEKLY EUR-USD CHART

You derriere examine by looking at the Weekly graph, that the EUR/USD is in a long term forex trading strategy downtrend. You'll notice the optimistic rally on the 4HR chart is scarcely a pull-rachis rather than a furious trend as it appeared earlier. Also, read the weekly trading strategy that will keep in you lucid.

Not only is it a pullback, but it is a pullback head into unknown resistance. It is unknown if you only look at the 4HR and don't clear what is going on long-term.

If we move a bit bit ahead in metre, you can fancy a bearish bounce off the resistance level. To the trader viewing exclusive the 4HR graph, this whitethorn look like a great time to bargain again in anticipation of Bullish trend continuation.

BUY Instal ON EUR USD

What the 4HR dealer may non realize is that this is not a pullback of the 4HR trend. Rather, it is a continuation of the Weekly curve. Where the long term trader sees obvious Bearish sequel potential, the short full term monger thinks this is "just a pullback."

To the 4HR trader, this looks like an unthought major reversal in the market. To a long term bargainer, it is an provable and potential continuation of market run over. It looks like-minded this in the Weekly view:

WEEKLY Good continuation

This is why information technology is so important to have a semipermanent term view of the market. Especially if you are sledding to promise yourself a long term dealer. Again, so many people looking at 4HR charts opine they are long full term traders. But they are ignoring the real long term time frames. Ignoring this pot get you into outsized trouble, just alike therein really-life exemplar. Those two bearish period bars you see would crush someone trying to take long positions on the 4 Hour chart. Yet they are just take off of the flow in the Period view.

Now, I am not saying that you cannot trade profitably on the 4HR charts. I am locution that it is very difficult to give systematically profitable trades when you do non have a good perspective of the markets longer-condition movement. Especially when trying to trade an intermediate fourth dimension frame like the 1 or 4 hour time frames.

With that said, let's spill the beans nearly my all-night term strategy for traders who wish to be profitable and consistent! ????

One major note about this strategy is that you must be chastised if you want to bring home the bacon. Yes, you need to be disciplined with all strategies to expect achiever. But in particular, if you want to switch a long term strategy efficaciously, you essential control your emotions and want to, "get into the market.

Peerless of the biggest mistakes that unprofitable traders clear is over-trading and over-managing their trades. As humankind, we have a desire for action and involvement. This tends to cause us to always want to have a trade open or always want to manipulate the trades we do have open. I tin can forebode you that this testament alone lead to little and fewer profitability.

If you need to be successful using the long term strategy that I am presenting to you, you must accept that there testament not be a ton of entries. Which is a favourable thing, in my legal opinion. Also, accept that there testament Be no require to "jump in" to the open swop and manage information technology. Also, read about the uncomparable forex indicators.

Present is how the strategy works

1. Shoot a flavour at the Monthly and Weekly charts.

Look for trends on these yearner-term charts that have good momentum in the respected direction. Something like this:

WEEKLY Graph OF TREND

Identify the direction of the trend (bear or bull). Make a notation to only look for entries in the commission of that trend (for illustration, if it is a optimistic trend, look for buys).

2. Soar upwards into the Time unit Chart and pull a Fibonacci Retracement from the current high to current low (or the new right smart around).

Here is how to draw a Fib Flat for those that don't know:

3. Look for pullbacks on the Regular time frame that are future the 38.2, 50.0, or 61.8 Fib Levels.

USD CAD DAILY FOREX CHART

If thedannbsp;price is getting close to united of those 3 key tale levels, be spread to urinate an entry.

4. Look for Candlestick Entry after Fib Grade is Reliable (touched by Cost).

As before long as price touches a weekly Tarradiddle level, you are now in the "waiting for signal" modal value. In other words, the criteria has lined up for you to make over a trade, now all you need is the signal to corroborate your forecast.

For this strategy, the signaling is a impulse daily bar in the centering of our long term sheer. An idealistic regular signal taper wish have a rump that has reliable (pierced through) the Tale level, merely so reversed back into the direction of the trend:

TEST OF FIB LEVEL

5. Take the entry. Place your stop and target.

Hither's how...

6. Waitress... then win or lose.

Just like I showed you in the video above; much trades win and some lose.

Don't seek to manage the merchandise or get fancy, just trust the strategy and let the trade be a winner or a unsuccessful person. Trading is all about Mathematics—a moral scheme has winners and losers, but at the end of the year, the winners out-matter the loser. They leave in this strategy if you follow it with discipline! To help with the math, try the forex trading position sizing calculator puppet.

Hope you guys enjoyed learning one of my favorite long term strategies. Please leave a comment with any feedback.
Comment if you plan on trying the strategy or comment if you hate the strategy!

Either manner, I'd love to receive your feedback! So, please give this scheme a 5 star if you enjoyed it!

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simple long term trading strategy

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