Huge Profits

Forex breakout trading is a simple to understand method of trading which works and will always work and if you master this trading method, you will soon be trading for triple digit profits in around 30 minutes a day. Let's take a look at how to trade Forex breakouts in more detail.

If you look at any chart of a currency pair, you will instantly see how all the biggest and best trends start and continue and that's by breaking to new market highs. Forex breakout trading simply involves buying high odds breakouts and locking into them for big profits. In a moment we will look at how to do this correctly but first, let's look at why most traders ignore this strategy despite it's profit making power.

Despite the fact that Forex breakout trading works, very few novice traders use it and the reason is simple - the novice trader always wants to predict the turn in the market and a breakout doesn't allow him to do this and when he sees a breakout happen, he waits for a pull back but of course, the best breakout trades carry on and he is left on the sidelines. The pro trader, doesn't mind missing a little bit of profit, he simply focuses on the big profit ahead of him and knows he is entering when the trend change has been confirmed and the odds are at there best.

When buying breakouts, you only want to trade the best trades with the highest odds of success and the way to do this is to be selective and only trade breaks of resistance which have been heavily tested before the break occurs. By heavily tested I mean the level should have been tested at least 6 times before the break. In addition, the wider the tests are in terms of time, the better and you should really look for, two or more tests to be at least 6 weeks apart.

If the sentiment is bearish and the news or other traders don't agree with the break don't worry about this, most traders lose and it's a fact, the best breakouts appear when the bulk of traders don't expect them.

Breakout trading simply involves looking at resistance levels and then, adding a few momentum indicators to time your entry. This strategy is easy to learn and will always work as long as markets trend - so if you want to make big gains with a proven method, learn Forex breakout trading and enjoy currency trading success.