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• Archive: In this lesson I’d like to present to you one of the simplest and most profitable strategies.I’ve first encountered this strategy 2 years ago, and frankly it was during a vacation…We’ve met a genius who traded Forex and stocks for 10 years.
• This guy’s motto was: „what isn’t simple, isn’t”. He insisted that trading has to be the simplest possible. If you turn your chart, which represents simple price action, into something that looks like a Picasso painting, you will turn your account into a zero…One must admit it’s a very interesting and refreshing theory.
• And even more interesting, after meeting this guy, my trading improved.Now, let’s examine this system:First of all, forget all chart types you’ve known up until now.
• According to this strategy, the only chart you need is a line chart.This chart:Without any Japanese candlesticks and other ornaments.
• Just a line chart.Note that this chart only shows closing rates of each bar.You can display this type of chart using this toolbar button on the top of your MetaTrader screen:The only indicator you’ll need is the RSI.Why?Because RSI best reflects the relative market force during breakouts of trade boundaries.This is how your complete chart should look like:Now let’s go over some simple concepts you need to understand:Support level, Resistance level, RSI 50 level and a Trend Line.Resistance level: this is a price level above current market price.