Most novice traders are always searching for a holy grail trading strategy that will bring them fortunes. What if I told you that I have a simple trading strategy that can bring 50 pips a day? What if I told you, that this strategy once mastered, can be done ALL on your phone?
You might think I’m selling snake oil, but I’m not. I’m not selling you anything. I will tell you this strategy for FREE.
The strategy makes use of price action and some basic understanding of fundamental analysis.
We first start by pulling up the daily chart for any pair. Once there, mark your support and resistance zones & levels. If you don’t know how to do that, please refer to this blog article: link. Once that Is done, use a trendline to identify a trend, if there is one. We will use the trade with the trend approach. Now, once all our key levels and trendlines are drawn, we are ready to look for a trade.
The first thing we need to do is identify where price is currently. Is price near a key support or resistance? Is it about to touch a trendline? If price is near a key support or resistance, look for a break – retest – rejection to occur. That is, wait for price to break above or below that level, come back and touch that level, and then reject it by continuing its original path.
Here is an example for a Gold Sell:
The precious metal broke a key support at 1519, retested and rejected before going lower. Take notice of how quickly Gold fell after our break-retest-rejection was completed. This simple strategy can also be used for long trade setups, where we wait for the inverse break, retest and rejection to happen. This strategy can bring 50 pips a day and sometimes even more.
The second & last component of this strategy is fundamental analysis. Over time with practice of this strategy you will learn that certain pairs or market conditions favor the 50 pips a day strategy. For example, many of the majors and minors are compatible with this strategy. Exotics due to their volatile nature, can lead to many fakes out using this strategy. Additionally, the best market condition for this strategy is when pairs are consolidating or ranging. This usually occurs during the absence of fundamental releases, like Non-farm Payroll. If a currency had better than expected fundamental release, you should look for potential buy opportunities using the 50 pips a day trading strategy for that pair.
There you have it, a simple trading strategy that can bring in 50 pips or more a day. Practice this strategy on your demo to get the hang of it, before attempting it on a live account.
