Author: Kelly PriceLots of traders want to follow an objective Forex trading signal that has the potential to make money and in this article we will give you a free one you can use, it works and the logic behind it is easy to understand. Let's take a look at it.
The signal we are going to look at is one which has been used by savvy traders since the late seventies and was originally credited to trading legend Richard Donchian. It works in any financial market that trends and of course we all know currencies trend long term and that's why this signal is so effective. Here is the equation which generates the signal.
Buy a beak to a new 4 week high in a currency and hold it, until a new 4 week low is hit. When a new 4 week low occurs, liquidate the long and enter a short. Hold the position until the next 4 week high is hit and keep reversing, on new 4 week highs or lows and always maintain an open position in the market.
That's it - you won't get much simpler than that! You don't even need a computer to generate the signal, you can do it in your head.
You're probably thinking, that's too simple to work!
Well test it and you will see, that not only does it work, it will get you in on all the biggest and best trends and allow you to make great profits.
In Forex trading simple systems works best, as they are very robust in the face of brutal ever changing market conditions. If you make a system to complicated, it will break. The signal is based on breakout methodology which is a timeless way to make profits because all the big trends start and continue, from new chart highs and lows.
The signal works best, when trading several different uncorrelated currency pairs and can also trade other markets for more diversification. It takes a lot of discipline to execute the signal and hold long term but if you use this signal, you will have the potential to make a lot of money long term.
Many traders like Forex robots, with fancy names and glossy packaging but this signal long term will beat all of these trendy cheap robots and it has something they don't - a real track record of gains.
Savvy traders use this signal to seek long term profits and you should too. It costs nothing to look at, its free. You don't get many things in life that are free and can make you money, so check out this signal called the 4 Week Rule and you maybe glad you did.
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