For those seeking a simple method in FX

When you started FX, didn’t you have experiences like this?

You keep trying new methods one after another, thinking, “There must be a better method.” You add indicators to the chart until the screen is covered in lines. You latch onto phrases like “a method with a 90% win rate” from YouTube or blogs and start over again from scratch.

Even I, with over 10 years of trading experience, started off exactly the same.

Let me get to the point.

FX methods that are simple are the strongest.

In this article, I, who have more than 10 years of trading experience and am also a programmer, will introduce truly usablesimpleFX methodsin a ranking formatthat are easy to use. After reading this article, you might be able to decide on one method you should use.

FX methods are strongest when simple — why do complex strategies fail

When I first started trading, there were more than ten indicators on the chart.

Moving averages, MACD, RSI, Bollinger Bands, the Ichimoku Cloud. I seriously believed, “If I have all of these, I can’t lose.”

But what was the result?

Every time I entered, there was a contradiction like “this indicator is GO, but this one is NO,” and I ended up not knowing where to enter. I also dragged out the timing of stop losses, thinking, “It might come back if I wait a bit longer,” without justification.

This is the main reason why complex strategies fail.

Too much information causes the human brain to delay decision-making.

In cognitive science, this phenomenon is known as “decision paralysis”—the more options you have, the harder it is to make the optimal decision.

FX is the same. The more indicators you have, the more ambiguous your entry justification becomes, and the slower your stop-loss decision becomes. The result is the worst pattern: you enter vaguely and exit vaguely.

A simple method has none of this.

Because the justification is narrowed to one or two points, decisions are fast. The stop-loss line is clear, so your psychology won’t waver. This is the biggest reason why simple methods beat complex strategies.

FX methods: you don’t need a lot — what is truly necessary?

“So, should I not hold any method at all?”

If you think that, you’re wrong.

Trading aimlessly versushaving a simple methodto trade with are completely different things.

Trading aimlessly means entering just because you feel like it will go up. It has no reproducibility, and even if you win by chance, there’s no guarantee you’ll win the same way again.

On the other hand,a simple methodmeans“enter when these conditions are met”— a clear rule.

Indicators should be used as a supplement

Indicators aren’t entirely unnecessary.

Signals to catch entry opportunities and supplementary judgments from indicators can be powerful allies when used correctly.

However, they are only a “supplement.”

The main basis lies in the shape of the candlesticks and price movement. Indicators are used to reinforce that basis. If you get this order wrong, you’ll be swayed by indicators instead of making solid trades.

How to choose a method that fits you

Three criteria determine the right method for you:

First,are the rules clear?The condition “this shape appears, enter” should be judged the same by anyone.

Second,can you explain the basis?Be able to explain in your own words why you enter there.

Third,can you sustain it?A method that is too difficult to continue is meaningless, no matter how high the win rate is.

FX method ranking — four recommended simple and usable methods

The ranking criteria are threefold.

Simplicity (clear rules that anyone can reproduce), low personal deviation (consistent settings and interpretations), and compatibility with candlestick trading (how well it pairs with reversal signals that are the article’s core).

Chosen by these criteria,simpleand usableFX method rankingwill be introduced.

Rank 1 — Candlestick trading

Rank 1 iscandlesticktrading.

Why is it number one?

Because it is the only method that can base entries on price itself without relying on indicator values.Moving averages are past averages. RSI and MACD display results based on past prices. Candlesticks, however, reflect the current moment’s battle between buyers and sellers.

Here, I publicly share my candlestick trading method for more than 10 years (Pattern ① Basic Break) for free.

What is Entry Pattern ① (Basic Break)?

The concept of this pattern is simple.

“Confirm a sign that the upward momentum has stopped and target a reversal.”

For a sell entry

First, look for two candles where both the high and the low have risen (two-candle sequence).Twocandle combination. Imagine an upward parallelogram.

Next, the second candle’s low is broken and closed below by the third candle’s close, which confirms the entry signal.Sell entryThe key point is the confirmation by the close. Even if the price temporarily breaks below with wicks, if it closes back up, you do not enter. This is a crucial rule to prevent whipsaws from triggering entries.

There are also conditions on candlestick color (bullish/bearish).

Other details on exit timing and other entry patterns are available on GoGoJiang (GogoJang).

→Simple Candlestick Trade Spectrum

Ranking 2 — Fibonacci

Rank 2 is Fibonacci.

What makes Fibonacci excellent isthe ability to measure retracement depth numerically.

After a move up, no one knows how deep a pullback will be. But with Fibonacci, you can anticipate exact levels like 38.2%, 50%, and 61.8 where reversals often occur.

Particularly notable isthe 61.8% line. This is the “golden ratio,” a proportion abundant in nature. In FX, this line often triggers reversals, so it’s a widely recognized basis that tends to work well.

Ranking 3 — Pivot

Rank 3 is Pivot.

Pivot’s strength lies in the fact thatthe calculation formula is fixed, so the lines shown are the same for everyone.

Because it’s automatically calculated from the previous day’s high, low, and close, there’s no room for personal bias.

Most importantly,institutional investors and banks’ traders also reference pivots. When many professionals look at the same line, it tends to act as support or resistance.

Drawing pivots from the previous day's daily chart often yields the next day’s support/resistance on a 15-minute chart.

Ranking 4 — RSI divergence

Rank 4 is RSI divergence.

You might wonder, “Why not MACD?” while reading this. The reason is we deliberately choose RSI here. I’ll explain by comparing to MACD.

Comparing RSI and MACD — why RSI fits better

What RSI excels at

RSI’s standard setting is 14, which is globally fixed. Traders worldwide use the same setting, so there’s minimal deviation between individuals.

The criteria are clear as well: over 70 is overbought, under 30 is oversold. This standard is universal, so divergence judged by this criterion is less prone to interpretation variance.

Why MACD is slightly inferior

MACD has three settings: short-term, long-term, and signal. Commonly 12-26-9, but settings vary by trader.

Also, MACD displays results based on EMA, which makes it slower than RSI. From the perspective of this article’s emphasis on simplicity and clear rationale, RSI is more suitable.

What is divergence?

Divergence is when price movement and RSI movement move in opposite directions.

Look at the chart below. GBPUSD daily chart.

Around January 6 (left vertical line)Price hits a high. RSI is around 65.

Around January 27 (right vertical line)Price makes a new high, well above the January 6 high (around 1.3850). Yet RSI is around 71–72, rising only slightly compared to the price increase.

In other words,price has risen dramatically while RSI has barely risen.

This divergence between price rise and RSI rise is a sign that the upward momentum is weakening from within.

Subsequently, price fell sharply.

Practical steps to simplify FX methods

“I know simple methods are best. But how do I narrow them down?”

Here are concrete practical steps.

FX is about mastering one method — the shortcut to success

Are you becoming a “method gypsy”?

A method gypsy is someone who, after one method fails, immediately searches for another method.

But after more than 10 years of trading, I learned something.

It isn’t that the method is bad; you give up before you master it.

Step 1 — 100 simulations in a demo account

First, without using real funds, try the same condition 100 times in a demo.

100 times is a lot, yet it’s the minimum. With too few samples, a bad draw might lead you to wrongly judge that the method doesn’t work.

Try 100 times to reveal the method’s characteristics. You’ll accumulate data showing when it works best and when it doesn’t.

Step 2 — Keep a trading log and record patterns

Record 100 trades.

What to record: entry conditions, outcome (win/loss), and market environment (trend or range).

Reviewing the logs will reveal patterns where conditions lead to wins. This becomes your evidence-based justification.

Step 3 — Narrow to winning patterns and go live

Only the conditions that tended to win in Step 2 should be used in live trading.

At this time, the most important decision is not to enter under conditions that tend to cause losses. Mastering a method also means knowing where not to enter.

From my 10+ years of experience, the state of mastery is when you can, at a glance, decide: “This condition is met” or “That is not in scope.” It takes time, but focusing on one method makes it inevitable.

FX method simplification recap — when in doubt, pick one and master it

Here is a final summary of what this article conveys.

FX methods are strongest when simple. Complex strategies fail because too much information slows judgments. Indicators should be used as helpers, with the main basis lying in candlestick price itself.

As a simple, usable FX method ranking, we covered 1) candlestick trading, 2) Fibonacci, 3) Pivot, and 4) RSI divergence.

Among these, the most straightforward and clearly justified method is candlestick trading Pattern ① (Basic Break), which is published for free. It requires no indicators, has clear entry conditions, and a design that aims for small losses and large gains. It is best suited for those who want to master a single, simple FX method.

If you’re unsure, try this one first for 100 trials.

From my long experience, mastering a single simple method yields far better long-term results than juggling many complex methods.