Forex Trend Following - Want Big Profits Trade Breakouts

If you want to catch the big profits by forex trend following you must incorporate breakout trading in your forex trading strategy. Here we will look at why the concept works and give you a FREE proven system.What is a breakout?A breakout is one that penetrates resistance or support to make a new high or low.Why are they so good to trade?The fact is that most big trends develop from new market highs or lows and this can be seen on any forex chart.How do you spot good ones to trade?Not every breakout of course develops into a trend - so you need to spot valid ones.A valid breakout normally consists of 3 or more tests in two separate time frames.The more tests the better and the more time frames and wider they are apart, the more valid the breakout is likely to be.Why don't all traders make money with them?Most traders don't bother with breakouts because they want to wait for the pullback.They think they have missed part of the move and want to wait for a "better price" - on valid breakouts, prices don't come back and the trader misses the move.Other traders buy breakouts without confirming price momentum - but you must confirm them!How do you confirm momentum?Simple - just look at some momentum oscillators (we don't have time to discuss them here in detail simply check our other articles) and if they support the breakout go with it.When you do your stop it's obvious - just below the breakout point.Despite the fact that breakouts work, most traders simply can't buy new highs and lows - but if you do you can make some great profits.You need to be patient though - good breakouts don't come around every day and you also need to confirm the move.If you do the above, you can make money with breakout trading, sure its simple but don't be deceived - many of the world's top forex trading systems are based on breakout methodology.