It really does not take a lot of detail to create a successful strategy. The strategy itself sometimes is the easiest part of piecing together your complete trading system. In the example I will illustrate below, I can show you how to profit by only using two horizontal lines.

The above is a daily chart of GBPCHF. I have an arrow pointing at a particular daily candle of interest. That was an extreme bullish day. As seen a few days back, there was an area of extreme support. Price finally ran as fast and hard as it could away from that point.

The days following price was a bit indecisive and were looking to be bearing. Price eventually faltered back down to the support, however it started to rise again until it reach to the nearly the high of the candle I pointed out. This is clearly a new line of resistance.

So it’s at this point, we want to know which way price is going. Price starts to drop again, however, we already know that the support is fairly strong. We also know price is below a line of resistance that has shown an equal amount of strength.

So what’s a trader to do?

In this case, this is a perfect set up to illustrate a breakout trade. By drawing a line at the area of support and another at resistance, we have created a channel for price to move between. At this point we don’t care which direction price moves. We just want to it make up its mind and go one direction or the other.

As shown, price continued to be a bear. It eventually closed below the low of the candle we first took interest in. And now take note of the very next candle. Price made an attempt to head back up but was stopped at the line of support that is now looking to be a line of resistance. Price continues to falter from there.

A good entry would be below the low of the candle that closed below the line of support. If you were wise enough to wait out the retrace that followed you would have been able to pocket hundreds of pips.

Sometimes a trader does not have time to look at charts. As well, sometimes a trader does not have the patience to wait out trades. The FX Trading Network has decided to look out for these traders. They have recommended signal providers that can allow a trader to profit without having to do their own homework. While developing a trading system like the one I have can be both interesting and rewarding, the reality is that it certainly is not for anyone. However, do not feel as if you cannot partake of the trillion of dollars a day industry because you have no interest in drawing two horizontal lines.

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