If you really want to make 1000 pips in a trade, you’ve got to think long term which also means you got to let your trade(s) run for a very long time and the best way to do it would be to trade larger timeframes.
The 1000 Pips forex trading strategy is about seeing what Is happening in the larger timeframes and then taking a trade based on those setups in the larger timeframe.
This strategy involves muti-timeframe trading and I will explain in more detail further below.
Timeframes: weekly or monthly
Currency pairs: any
Forex Indicators: none
WHY LARGER TIME FRAME TRADING SETUPS MATTER
If you take a step back and switch to your monthly or weekly timeframe charts, you will notice the bigger trends that have moved for thousands of pips.
These moves may have originated from support and resistance levels usually, trendlines and maybe even fib levels and the thing is it is these that cause the price to move in thousands of pips.
This chart below explains what I’m talking about. Notice those support and resistance levels highlighted in blue boxes and how price moved when it reached them?
LEVELS WHERE PRICE MOVES IN THOUSANDS OF PIPS
In your larger timeframes, you need to be monitoring:
- support levels
- resistance levels
- fibonacci retracment levels
These are the top 5 levels or zones where price can reverse from.
MULTI-TIME FRAME TRADING TECHNIQUE
Now, if you were to trade using only the monthly or weekly charts, it would take forever for trading setups to form so you can trade them.
With this forex trading strategy, its not like that.
What you do is mark where all these levels mentioned above and know them at the back of your mind where price is in relation to them so as price comes near to them, that when you start to pay a lot more closer attention so that you can trade these setups that are now forming based on the larger timeframes.
These means you can trade another trading system based on the smaller timeframes like the 15mins or the 1hr and that is what you will be using regularly to trade but always keep in mind what Is happening in the larger timeframe.
So with multi-timeframe trading, what you do is when the trading setups in the larger timeframe is happening, then what you do is switch to a much smaller timeframe like the 1hr or the 4hr or even the daily chart to take the trade that is based on the monthly or weekly setup.
The trading rules a really simple:
- Identify levels in the weekly or monthly timeframe where price can reverse from. These can be support and resistance levels, trendlines, channels, fib retracement levels.
- As price nears, switch to a much smaller timeframe like the 1hr, 4hr or the daily timeframe and you can place a sell limit/buy limit order depending on which side the price is heading to or you can watch for a reversal candlestick signal and use buy stop or sell stop order and place on the high/low of that reversal candlestick pattern that forms in the zone of the levels mentioned above.
- The stop loss must be placed outside of the zone of these level to avoid getting stopped out prematurely. Or you can also you the daily average movement in pips and use that as a guide to placing your stop loss. For example, if EURSUD has averaged 150 pips move for the last 5 days, then your stop loss should be 150 pips.
- Place your take profit target at 1000 pips.
- And then wait and wait for a very long time. It may take a week, or even 2-3 months before you hit your take profit target level.
HERE’S AN EXAMPLE OF HOW TO TRADE THE 1000 PIPS FOREX TRADING STRATEGY
Step 1: Identity levels where price can reverse from and you can see, on the chart below the blue box on the left is a potential resistance level or zone so this was a sell setup happening in the monthly timeframe:
Step 2: switch to a smaller timeframe and you can either place a sell limit order or wait to see if a bearish reversal candlestick forms. In this example, the 4hr timeframe was used and notice that bearish looking candlestick that looks like a shooting star, that’s the kind of signal you look for to sell (in this case).
STEP 3: Wait and wait and Watch your profits increase or you may get stopped out when you trailing stop loss is too closely so avoid doing that. Its Better to use the daily timeframe to trail stop your trades, even the weekly candlesticks would be better.
This is what happened with the trade setup executed above:
So there you go, the 1000 pips forex trading strategy.
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