As far as Forex Trading Strategy is concerned….

The ” More Logical ” it is…..the higher would be the success rate.

Which also means more pips ( & profits ) for you and me end of day !

Just like any financial market, the price movements are driven mainly by ” Human Sentiments”…

The 2 major driving forces are :

1) Panic Selling

2) Greedy Buying

When any of these 2 are ” NOT in balance “…

The price would move….. or rather ” Breakout “.

Now …let me explain and illustrate why and how you can apply this technique & benefit from it too below.

Here’s a trade I took on the GBY/JPY pair using this forex trading strategy to share :

When I woke up in the morning  ( to accompany my wife to the market )….

I also took a glimpse at how’s the forex market is doing after a very BULLISH run previously.

Normally I would not trade on a FRI because it can go really crazy and ” Unpredictable “.

For for this situation, I spotted a very nice ” Double TOP ” price pattern that morning.

So instead of going out straight away…

I requested that my wife give me 5 minutes for me to do some trend-line drawing and place my trades…hehe

As you can see from the screen-shot above…

The price ‘ BOUNCE OFF ” the trendline I drawn..& start heading southwards.

” This is really a very nice and perfect set-up to capture some reliable pips ” - I told myself…

Note: This is something that you would want to know too…really.

When the price does ” Bounce Off ” from the trendline….it actually reflects something important.

If you have been trading using ” Price Pattern ” ( just like me ), you would understand it by now too.

Basically when the price Bounce Off….it means one force is stronger here.

For this case would be the ” Sellers’ sentiment is greater “…

Therefore preventing the price from going any higher than the trend-line.

So it goes with the direction which I want to take too - To SELL or SHORT !

After using the ” usual ” Risk/Reward assessment of mine..

I placed an order, a Stop-Loss & a Take Profit target.

This time round, I am NOT aiming for the usual 250 Pips but I am rather ” Conservative “.

I am using the “ earlier lower point support ” ( Point A ) as a reference for my TP.

( Which you can see from the diagram above )

So I decide to set :

- My TP @ 138.55 ( 180 Pips Realistic Target in case the price ONLY range )

- SL at 141.25 ( -90 Pips )

( rather good risk/reward ratio )

- ” SELL ” entry @ 140.55

Here’s the screen-shot of the order to share :

Using this ” Simple Price Pattern ” analysis which took me about 15 minutes…. ( before heading to the market with my wife )

I profited about 180 pips.

Which gave me a nice USD $1844 +.

Although the price continue to plunge further beyond my TP target of 180 Pips…

But it is really important that one keeps to a ” More Realistic ” target ..

Than to set an ” Unrealistic Profit Target ” and then to see the market reverse and hit our SL …..

That’s really a ” OUCH “….& definitely something we can AVOID!

Which is a basic ” Psychological Aspect ” anyone must possess ….if he/she really wants to be a successful trader.

And Make Real Consistent From Trading Forex Every Month….!

Do you possess such psychology?

Do you always KNOW & set a ” Realistic  Price Target ” …..like I do ?

Something to let you ponder perhaps….

Oh ya….

If you also look at the diagram again, you would notice a ” PIN ” formation on the right bottom too..

This kind of ” PIN ” is a very potential REVERSE set-up.

But I did not take that trade because it is FRIDAY and the market would be closing in just a few hours time.

I try not to take any trade during that period nor do I carry my trade past the weekend.

( Any scary news can just drop over the weekend and cause a ” BIG GAP ” on Monday….! )

Furthermore, I am going out with my wife for a friend’s birthday celebration that time…

So it is kind of ” Enough for me this week “….

Total profits for this month as been rather good with over $25,000+ like I mentioned in my earlier post.

If you have not read it…..

=> Here’s the link to share about one powerful strategy to catch massive pips

Alright…

So much for this post on ” Simple Logical Trading Technique Combined With Double Top “.

I hope that ( once again …) you have learnt another great forex trading technique & got enlighten as well.

Thanks for reading this far.

Happy trading, Happy hunting & More Successful Logical ” Explosive ” gains for you too !