I'm sure you have heard about that principal (the KISS principal) before about many things. No reflection on you, just a constant reminder for me. When it comes to currency trading it is more important than ever. I am going to briefly cover the following:

Identify the trend
*Forget the indicators
*Use Price Action
*Watch for the strong Pin Bars
*Wait for a pullback
*Place the trade
*Set STOPS and LIMITS


Is that simple enough?

Identify the Trend

Go to the daily chart (one candlestick = 1 day) for the currency pair you want to trade. You will be looking at about 3 months data on the chart. If you cannot identify a trend (either up or down), forget about trading this pair.
If you can identify a trend, keep in mind that the stronger the trend, the better your chances are of a winning trade. Look at more currency pairs and pick the one with the strongest trend to place a trade.
Go to the daily chart for EUR/USD and let's see if there is a trend. We see there are lower highs (LH) at about one month intervals with each one about 100 pips lower than the previous. That is a slight downtrend.

Forget the Indicators

All those indicators just clutter up your charts and your mind.

Price Action

I will just point you to a simple introduction for https://www.aboutcurrency.com/strategies/forextradingstrategies/forex_price_action_trading_strategy.shtml.

Pin Bars

The best way to introduce you to pin bars is to point them out on a chart. Go back to the daily EUR/USD. Look at May 5, 2011; Notice the shadow above the main body is much longer than the main body. That indicates that the buyers tried to send the EUR higher, but the sellers said ABSOLUTELY NOT. That is and indication of a reversal, not every time, but most of the time. Look at July 11, 2011, same kind of thin but the opposite direction.

Wait for a Pullback

What we just saw under Pin Bars was a pullback (reversal). There are a number of other pullbacks on the daily chart for EUR/USD. You need to examine each of them much more closely to determine what caused them.

Place the Trade

You probably want to go to a lower chart to pick your entry point. Before you do that, hammer it into your mind whether you are going to place a Buy or Sell order, because when you get to a lower chart things might look different than on the daily chart. Don't be tempted to change your mind because you ARE NOT A DAYTRADER! You are just picking a good entry point and maybe a few extra pips on your entry.
When you are up to your a** in alligators, remember your initial objective was to drain the swamp!

Stops and Limits

Stops and Limits are your saviors! You cannot survive without them.
Go back to the daily chart for EUR/USD. Confirm the slight downtrend for the EUR again. We are expecting a reversal in the current rise of the EUR some time after August 16, 2011 (strong pin bar signaling the reversal). Notice that the lower highs over the past three months have been about 100 pips or less. The runs after the reversals have been about 500 pips. The stop should be 100 pips and the limit should be 400 pips.

Conclusion

Trading currency pairs more often is not what makes you successful; Trading currency pairs smarter is what makes you successful. As you build up your account balance you can start trading larger size lots. That is how you increase your earnings!
Go back to the daily chart for EUR/USD. See, again, that we are in a slight downtrend for the EUR. We have placed a SELL order for EUR and are expecting a reversal sometime after August 15, 2001 (strong pin bar signaling the reversal).

Tradency Mirror Trader - Let's Put It On AUTOPILOT And Go Saltwater Fishing

I am switching my trading strategy to Tradency Mirror Trader and I invite you to follow along with me as I do this. You can do both, but I am trying to cut back the time I devote to currency trading.

Tradency Mirror Trader allows:

*Automatic mirroring of EXPERT traders around the world
*Semi-automatic mirroring these EXPERTS by mirroring LIVE SIGNALS
*Manual trading like the old days of trading


I want to get to where I am spending about 2 hours a week setting up my trading plan for the next week and spend more time doing saltwater fishing!

Good Luck with both!