This is a very simple forex trade strategy to use and it is extensively used by many traders. You can simply trade with this strategy on a demo account and you will observe great success. Although it may be difficult to search for a forex strategy that will suit your investment as a trader or a new trade you should first of all get an understanding of the basic strategies that can be used. forex trading requires a lot of discipline and you would have to work very hard in order for you to obtain maximum return from your capital.

 The simple trend line strategy involves the monitoring of the daily charts and the presentation of the trend lines. A trend line would have to connect to two points and this is very important because you should note that a trend line does not have any breaks between its two points. 

 In this article we will look at the USD/CAD trend line as an example so as to get a clear picture of how this forex strategy can be employed in your day to day forex trade. 

 At most cases trend lines are often used as resistance and support points and the market may often make a reverse swing or it can bounce at them. The only way to make use of this to our advantage is to setup buy or sell orders at the trend lines. A stop can be placed right below a trend line and you would have to make sure that there is enough resistance for volatility. Therefore if the trend line makes a hold you can possibly set a take profit point at resistance or support point or generally make a trailing stop. A small loss will be made if a trend line breaks but usually they always make a hold and this will significantly increase your chances of making a big financial gain. Depending on the forex broker you are able to get margins as low as 0.05% and as high as 4%. 

 For the aggressive forex traders, making use of leverage can yield great profits. Forex traders are able to control their amount of currency through the use of margin accounts. Having a margin account with a forex broker will also give you the opportunity to borrow money from your broker so as to control currency lots. 

 As price moves upward in an uptrend or downward in a downtrend, it will retrace and bounce off the trend line at certain times. However, using a trend line bounce by itself as a Forex entry signal is too risky. There have to be other factors. 

 Once you have drawn the trend line you now have a graphical representation of price movement and you will be able to see where price has to retrace to test the trend line once again. 

 Now use other indicators to see if that level where price would need to retrace to test the trend line combines with other factors. 

 Calculate your daily pivot points and draw horizontal lines on your chart to mark them. Run your eyes left on the chart and note if there were any significant highs or lows that formed support or resistance within the last few days. Support and resistance on higher time frames usually provide more substantial reference points. 

 Use the Fibonacci tool on your charting software and mark retracement and/or extension levels on a variety of swing highs and lows and see if any intersect the trend line. 

 Also make sure you have the 200 EMA (Exponential Moving Average) line shown on your charts and note whether this also intersects near or at the trend line. 

 Now if you have a combination of two or three of the above indicators meeting at the same place you have now identified a forex entry signal that can be regarded as high probability. 

 Your entry order to be taken in long at this point where the trend line intersects with the other indicators and set a reasonable target limit for what probably will be a profitable trade. 

 For a downtrend, you can simply use the above indicators going the other way. 

 This strategy may look so complex due to the fact that there is an extensive monitoring of the daily charts but certainly if you get to understand how this strategy works you will soon find out that it is very simple and easy to use. The strategy has been proven by many traders to be very successful and definitely it will work for you. You do not have to spend most of your valuable time monitoring the charts. A period of 15 to 30 minutes per day is recommended and by setting your trend lines correctly you will be able to observe a favorable market trade that will certainly give you a positive movement in price at that particular day and period. 

 This strategy is of very low risk and is suitable for the new traders who are looking for strategies that have low risks. As a new trader you should make sure that you first try out the strategies that have got very low risks so as to obtain a clear view of how the markets work. The very best observation would be for you to make use of a demo account so that you are able to try out several strategies and see what kind of risks they have. Not all strategies have got very low risks but the way at which they are used will certainly make them have low risks. 

 You will soon get to understand that selecting a pair that will certainly give you a big financial gain is very easy only if you get to understand how the forex market pairs move on a given period. 

 The strategy is very simple to use and can easily be adapted by the new forex traders. It will only take you a few days to master how the strategy works and you will certainly be ready to commence trade on any given market at that particular period and day.