The Most SIMPLE FOREX STRATEGY That Works On Every Time Frame

Hey, what’s going on guys? Today I’m going to show you how you can trade the most simple FOREX STRATEGY that works on every single time frame and make money doing it. Now, okay, before we get started I have a few things to say. I’ve been trading forex for over two years and I’ve watched tons of YouTube videos on how to trade and they’re way too overcomplicated. Fibonacci, Bermuda Triangle, whatever it is. Okay, today I’m going to show you the most simple strategy there is. It only takes two simple concepts and you’ll be making money so easily. I tend to find that a lot of strategies get so overcomplicated and this strategy is very simple to follow and simple works best.

Concept Number One: Trend Break

Okay, so before we get started here, I’m gonna bring you into the whiteboard and I’m gonna explain two simple concepts that make up this trading strategy. So, we’re at the whiteboard and first things first, I want to explain the first concept. This is going to be concept number one.

Concept number one consists of this: in an uptrend or a downtrend, let’s say you draw out a trend line. Wherever the trend breaks on the trend line and the candle closes, that spot where it breaks is a key zone where the price will come back to. So if we mark out this area, when the trend kind of comes down into a downtrend, as soon as it starts to come back into an uptrend, it will come back to that area 99.9 percent of the time and I’ll show you in a minute on the charts.

Same thing goes for a downtrend. So, let’s say you are in a downtrend. I draw a trend line, it breaks the trend, closes the candle. This is a key zone that the price will come back to. So, let’s say it comes up into an uptrend, kind of consolidates for a bit, comes right back down. It will always come back to this key zone where it broke its last previous trend.

Examples on the Charts

Okay, so here we are at the charts. We’re gonna use EUR/USD as the example and keep in mind that this works on every single time frame there is, even the one minute. Just as we’re looking right now, we can already see on EUR/USD there was a nice little trend line right here. The trend ended up breaking right in this zone here and price eventually came back right to touch it again. So that’s just one example.

We’ll show again. This was like a nice trend right here. We select this area where it broke, price came back and came right into that zone again. We see it happen all the time on every time frame there is. We can even scroll down smaller. So this little thing right here, this is a little downtrend here. This is where it broke and price came down and perfectly touched into that zone again. It happens over and over and over again on every single time frame.

It’s just perfect. There is a reason this happens and I’ll explain that further in more videos. For now, I’m going to keep it simple and just show you the strategy. But in some future videos, I’ll tell you exactly why that happens. Something to keep in mind is that the forex market is heavily manipulated and everything moves to a certain area for a certain reason. I’ll explain in some further videos, but just know that the forex market is super manipulated. It’s not just random and if you can actually learn why it moves and how it moves, then you’ll be able to beat the market.

More Examples

Okay, so moving on, we’ll find some more trends here. For example, this was an uptrend here. Let me just make sure because the game bounced, bounced, and it broke right about here. As you see, price came up, touched, and came up and touched again. Let’s see what happens here. Price broke right about there, price came down, came up and touched right back into the zone again. Like it happens not every time.

I’m gonna jump to the one-minute time frame just to show you it happens even on the smallest timeframe there is. We can see the same stuff happens here. So we are in a downtrend here, price broke right about there, so price came up, came back, touched right back into that zone again. Then price formed an uptrend right here, price broke right there, price came down and came right back up into that zone again. Always comes back up into that zone here.

Same thing, downtrend, price broke right about there and once again price came up, touched and back into it and even further again came back and touched perfectly on its own. Like how perfect is that? This happens over and over. We’ll even jump to the daily just to show you in the daily this still happens on every single time frame.

Daily Time Frame Example

Alright, so we’re on the daily time frame here. We will show you this is like a little downtrend here, price broke right here on that candle closed. It broke right about there so we can mark this area and once again price came up, came back, touched into the area and further went on again to even come back into this area once more. I need some water.

Okay, so now you can see this happens on every time frame. Hopefully, you got that concept. It’s pretty simple. We’re gonna move on to concept number two.

Concept Number Two: Trend Reversal

Okay, we’re back here at the whiteboard. We’re gonna move on to concept number two. This is gonna be concept number two. So for this, what we learned first up here is that whenever the trend breaks, it will always come back. But the problem lies in knowing when it will come back to that area so we know when to enter our trades. To figure that out, we need to know when the trend will reverse to come back up to the area. So to understand that, we need to know when the trend reverses and how it reverses.

That is exactly Concept Number Two: Trend Reversal. So to figure out when a trend will reverse, first we need a trend. Let’s say you are in a downtrend and you’re waiting for it to reverse to an uptrend. You have the trend line here and what we need to understand is what trends are made out of. A downtrend is made out of lower highs. So as we can see here, every time the trend goes down, we have a lower high. Once we know that this is a lower high, once we know that we can then understand when these trends reverse.

To figure out when these trends reverse, we need the price to close a candle above the previous high on a downtrend. So when the price closes above the previous high, then we will start to see the trend reverse back up. If we pair this concept with the first concept, you will trade flawlessly.

Now for the opposite, let’s say you are in an uptrend and you want to figure out when it will reverse into a downtrend. Now an uptrend is made up of higher lows. These higher lows define that it is an uptrend. So now what we are looking for is a candle to close below one of the higher lows. When that candle closes below the higher low, then we will see it reverse into a downtrend.

Now it is very important that the candle closes below and not that the candle is above. We need to see it close below because sometimes you might see the candle come down and poke through the lower high or the higher low and it won’t exactly close. Literally minutes before the hour ticks by, the candle will close but not below. There’ll be a wick, but the candle won’t close below. So it’s very important that you’re patient and that you wait for the candle to close. That being said, we’re going to jump over the charts and I’ll show you exactly what we mean here.

Applying Concept Number Two on the Charts

Okay, so we’re back to the charts now and I’m going to show you concept number two. Then after that, we’ll show you how we can pair them together to make trades. So concept number two on the charts: whenever you have an uptrend or a downtrend. For here, for example, we have an uptrend. To figure out when the trend will start to reverse, we need a candle to close below one of the previous lows. An uptrend is made up of higher lows.

So we’re going to mark all the higher lows: higher low, higher low, higher low. Okay, so now we need to look for a candle to close below one of the higher lows. As we can see right here, we have a candle that closed below the higher low. There is a wick, but as long as the candle closes below the higher low, we now have a trade. As you can see after that candle, the trend now started to turn into a downtrend.

Here we have another downtrend right here and we have lower high, lower high, lower high and a candle closing above the lower high. Look right after it turned into an uptrend. Here we have the reverse. We have an uptrend, right? We have a higher low, higher low, higher low and the candle closed below the higher low right here and then it turned into a downtrend. This happens all the time, every time frame.

Just an example, we will go to the one-minute time frame just to show you guys. Okay, so we’re on the one-minute time frame here. We can see we are in a downtrend right here and we have lower high, lower high, lower high and a lower high. Now we’re looking for a candle to close above. The candle closed above right there and it turned into an uptrend. Okay, so that’s concept number two.

Pairing Both Concepts

Now if we pair these concepts together, we’ll show you exactly how we can execute a trade. So we’ll go back to the one-hour time frame and we’ll show you exactly what we mean. For example, this was a mini little downtrend here. So we know if we mark out where it broke, this is concept number one. The trend was broken by this candle, so we know that where it broke, the trend will come back to that area.

Now concept number two is figuring out when it will come back to that area. So we know after it broke out, it turned into an uptrend here and an uptrend is a higher low and a higher low. So we have a higher low, a higher low and a higher low. Concept number two is when a candle closes below the higher low, we now turn into a downtrend. So now what we could do is we could put a sell right when the candle closes below the higher low, put our stop loss above one of our candles, targets below right down to where we marked out and we will see how this trade plays out.

So we can see price comes up and eventually price comes down and perfectly hits right into that exact spot that we marked. Like this isn’t just random, there’s reasons why it moves like this and if you know that, you can perfectly execute trades. Just like that, we have ourselves a one to five risk to reward ratio. So if we risked a thousand dollars, we would have made five thousand dollars right there. This stuff happens all the time.

Another Example on a Different Currency Pair

We’re going to jump to one more trade just to show you guys on a lower time frame that this works. Let’s say we’ll actually use a different currency pair just to show you guys it works on a different pair as well. We’ll jump over to, let’s do USD/JPY and we are going to mark out this. Let’s mark out this trend for example.

Alright, so concept number one: wherever the trend breaks, which would be right here, price will come back to that area. So now that we know that, concept number two is look for the uptrend. We have our uptrend here and let’s say we didn’t see this yet, right? We see that we have a higher low and a higher low. This candle closed right below our higher low, so let’s say we put in a sell right there. Now we can put our stop above the previous candle right there and we put our targets below to where we marked. Now we play this trade out. What happens? Price comes down and perfectly taps in right to where our trade is for a nice one to 2.4 risk to reward ratio.

The stuff is crazy, happens all the time. You’ll see it on every chart. I beg you to go check this out, looking on every chart. This is the most simple strategy out there. It works all the time. If you have any further questions, please comment below, ask me anything. I’ll try to get to your questions. I’m going to be making even more future videos on explaining these concepts further and some other tips and tricks that I have as well. Please hit that like button and I’ll see you guys next time.

Read More: Insights from Professional Traders: Learnings from Top Trading Minds