Forex Trading Strategy You Can Use To Trade Easilyby Nisha Patel Professional forex trader
There are many trading strategies you can use to trade. Here you will get to know some of the basics forex trading strategy you can use to buy and sell easily that every trader in the forex market should know about.
1. Follow The Trend
One of the most important and best forex trading strategies is following the trend. It is easy and simple to obtain a hang of. The only thing you require is to open positions in the trend’s direction. Market trends can be the short or long term, so you must decide the set of trading strategy you want to follow. The decision here will determine the type of charts to use, but the trading strategy will consistently follow the trend.
Click on below link: How to Identify and Follow Trend
In case of an upward trend, regressions are anticipated in the price to buy a pair. This is to ensure a good entry price. Should there be a downward trend, you have to wait for the price to return to normal, before handing over the coins.
2. Trend lines
One of the most powerful and easiest charting tools in the market is trend lines. Draw a straight line joining two points on the chart. For an upward trend, a line is drawn below joining two or more points. For a downward trend, a line is drawn over the chart joining two or more points. More often, prices follow the trend lines when drawing near them.
Click on below link: How to Use Trend Lines in Forex
In corrections forex trading strategy which can be measured in the trend available in simple percentage. So generally, market correction runs a notable part of the previous trend. 50% trace above trend is the most common. 38% and 62% for Fibonacci retracements are the two highest levels, this is followed by traders in forex who include financial institutions such as banks.
4. Resistance and Support Levels
You have to find resistance and support levels. It’s best to sell near resistance levels and purchase close support levels. The resistance level is always crest above the previous high. When resistance is eventually broken, it becomes support. Similarly, when support is eventually defeated, it becomes resistance.
5. Moving Leverages
Common techniques to utilize moving leverages is using different leverages in the same chart, hoping for crossing the leverages.
Example: If you have an upward trend and the price in a correction, at the period that quick-moving leverage (10-day) crosses above slow-moving leverage (20-day), then this is probably a good buy.
These help you to identify the markets in an overbuy or oversell state. Moving trends give you proof of market trend while oscillators tell you the correct time to open a trade. Relative Strength Index (RSI) and Stochastic are the two common oscillators. These two oscillators operate on the scale of 0 to 100. When the RSI is above 70, the purchase is affected, and when it is below 30, it shows no overbooking. The values of overbought or oversold stochastic are 20 and 80.
Click on below video: Stochastic Oscillator Trading Strategy in Forex
7. Average Directional Movement Index (ADX)
Average Directional Movement Index (ADX) helps you know whether a market is oscillating between ranges or is in trend phase. It measures the robustness of a market direction or trend but does not show the direction. For that, you have to use indicators or tools.
Created on Sep 14th 2018 01:29. Viewed 438 times.