One of the most effective ways you can trade the various forex pairs is to look for price breakouts. In other words you want to look for currency pairs that have recently been trading within a narrow trading range and then be prepared to open a long or a short position when the price finally breaks out of this trading range, either upwards or downwards.

Indeed one of the trading methods included in Bill Poulos’ new Forex Time Machine course is a breakout method.

So does this breakout trading method actually work?

Well no trading method is 100% perfect of course, but in most cases it does produce some excellent results. This is largely because lots of other traders are keeping an eye out for these breakouts as well. So obviously when the price does break upwards out of this range, for example, many of them will jump on board with new long positions. As a result there is a substantial amount of momentum behind the breakout and the price will therefore just keep on going even higher.

If you want to increase your chances of success you should wait for an initial breakout followed by a retracement back into the trading range followed by a second breakout. This additional breakout will act as confirmation and will almost certainly result in a large price move.

So overall I can highly recommend that you use some kind of breakout method when trading the various different currency pairs. It really can turn out to be a great low-risk high-reward trading strategy.

Tags: bill poulos, currency pairs, different currency, price breakouts, trading forex