The “timed stop” forex strategy is relatively simple and is a good criteria for a beginner of forex. Prior to taking a position, the forex trader decides how long he/she would like to stay in the trade. The decision may be based on personal time constraints reasons it may be purely technical (and likely should be).
"Whipsaw" is the Forex jargon referring to a sharp price movement in one direction and an abrupt reversal.
The trailing stop-loss is a dynamic procedure when the exit point moves closer to the entry point if the currency moves in the direction favorable to the trader. The trader may also do this as new support and resistance levels are formed as the currency moves in their direction.
The trailing stop decreases the risk if the currency initially moves in the trader's direction but then fails to follow through. The trailing stop also attempts to fix a minimum amount of profit if the rate moves substantially enough for the trader to move the trailing stop to a profitable level.
A very simple forex strategy which nevertheless often works. Its validity has been tested over and over again throughout history and remains one of the most widely used strategies.
In is easy to implement and asuitable for beginners of forex as well as for advanced traders.
It works based on the forex crowd psychology.
Of course, nobody can predict the future and nobody can predict the movements of the market. However, sometimes the market moves in such a way that the prediction is possible.