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In this article, we will look at a simple Forex trading system which can make you big gains and even better, its easy and quick to learn and if you use it, you can soon be making big currency trading profits in under an hour a day. The Forex trading system we will look at here is based on swing trading overbought and oversold levels - so let's look at it in more detail. In Forex markets its not the fundamental facts which dictate prices, its traders opinions of them which do. The facts are there for all trader to see but they all draw their own conclusions from them and there trading decisions are influenced by the emotions of greed and fear. These emotions push prices to far up or down and then, prices return to more realistic levels. You can look at any chart and see this en in any currency pair in terms of price spikes and you can also see they quickly fade. The swing trader looks for price spikes and sells when greed and fear push prices to far either up or down. Now we will look at how you can make money from these moves, our example below is based on a currency which has become overbought but the same method can be used in a market which is oversold. - Watch for a sudden jump in price accompanied by increased volatility and look to see if prices have become overbought and how overbought they are. You can do this by looking at some momentum indicators. Momentum measures the acceleration to price and shows you, how overbought the market has become. - There are many oscillators to choose from but three of the best are the stochastic, the RSI and the MACD. There easy to learn and you just need to look at them to see if a market is overbought and how overbought it is. Choose a few you like (no more than three) and use them to time your trading signal. - The key to timing your trading signal is to watch for prices to be rising and for momentum to diverge from the price in terms of - momentum falls while prices are still rising. As soon as this occurs, go short and put your stop in above resistance and set a downside target. - Always make sure you have a stop in to restrict risk and a target above support where you are going to take profit. You don't want to take profit at support because you risk a rebound in price against you. Get out early, put your profit in the bank and wait for the next opportunity. - Always keep in mind, that the more overbought a market is, the bigger the downside potential is when you get your trading signal. Don't focus on just trading overbought markets, trade currencies that are near 3 month extremes. You won't take more than a few trades per week but your profit potential will be huge, as you will be trading with the odds firmly on your side. A Simple Forex Trading System for Huge Gains Forex swing trading is very simple but the fact is simple Forex trading strategies can make a lot of money and the good thing about swing trading is - its easy to learn and is ver profitable - so learn to swing trade in Forex and you can enjoy long term currency trading success and make some great FX profits. NEW! 2 X FREE ESSENTIAL TRADER PDFS
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