Starting from riding up to trend news straddling, here's a collection of the best forex trading strategies.
1. Follow the market sentiment
This technique is actually just be one part of the overall trading strategy usually involves the rules of entry and exit.However, following market sentiment could be the most important runway in decision-making.
2. Trend Riding
Trend riding, or often known as trend following is one FOREX TRADING strategies.There are 6 steps in the strategy execution trend riding among these are:
1.Specify how long you want to hold the position.This will determine the choice of trading time frame that best suits your condition,There are 3 types of time frames that need to be observed in the Bollywood trend riding, that time frame is large, medium, and small.
2.Make sure the current market sentiment is in compliance with the trend that is formed on the chart.To recognize and measure the sentiment, you can implement a strategy before.
As for knowing the direction of the trend, You could use a trendline. In recognizing the trend of prices, you should also understand the stages of the formation of trend
3.Observe the validity of the trendline. It can be seen from how often the price of testing the trendline. The more often that condition occurs, the more valid the trendline.
4.Confirm the direction and strength of the trend. At this stage I suggest using ADX indicator or the Stochastic oscillator and MACD-like.
5.Order entry based on the trend in short-term time frame.
6.Place a Stop Loss at least 20 pips of the trendline.
3.Breakout Fading
This strategy is in contrast to trading a breakout profiteers of transpiration rates at the levels of importance. In other words, breakout fading signals identify false breakout and tend to be in tune with the way the market is trading sideways. This strategy is very precisely applied to the quiet, with market price movements that are not too volatile and relatively complies with the limits of support and resistance.
4. Breakout Trading
Almost all traders interested in harvesting huge profits within a short time.One of the best forex trading strategy to get it was breakout trading.
However, in order not to get caught signal false breakout,We can confirmed signs of breakout with a view the strengthening momentum of prices.
Some ideal way he calls can be used to know the momentum was, observing the movement of the MACD histogram from level 0, notice the overbought and oversold RSI level, as well as using signal divergence to be had from the difference in motion the price with the MACD or RSI.
In addition, ensure the entry after the price actually closed below support or above resistance, as well as knowing the market sentiment could also give further confirmation to avoid false breakout.
5. Breakout Of low volatility
Still surrounding the breakout strategy, Grace Cheng stressed this time taking opportunities when price volatility are receding. From here, you might wonder, why is thus looking for opportunities when the low volatility? Is it not its potential will be very small when compared to the bustling market when the breakout?
6. Carry Trade
Categorized as a long-term strategy which aims at gaining profit from positive swap,recognize the carry trade strategy as the favorite of the big players in the forex market. The key to the success of this strategy is mostly located on the selection of pair trading. It was because the pair with two currencies that interest far different tribes will give more benefits.
7. News Straddling
The best forex trading strategy most recently was news straddling.As the name implies, this strategy based on high-impact forex news, looking for opportunities to profit from the movement of large post news releases.
But for this strategy I recommend are:
-Focus on major pairs, especially the EUR/USD.
-Use the intraday time frame (H1 to the bottom).
-Define support and resistance that make up channel price.
-Install Pending buy and sell Orders above resistance and under support.
-Entry only at price levels that are wanted. If that could not be met because of the risk of slippage or requote, you should not trade.
-To minimize losses if both the Pending Order is touched, the same place the Stop Loss pending buy approximately 20 pips below the resistance, and of pending sell Stop Loss 20 pips above support. This is a manual solution need not involve external plugins such as OCO orders.
End Of Word
A trading strategy can be best for a trader if he is able to understand and apply them appropriately. Useless you apply the best forex trading strategy if it fails to understand the kaidah-kaidahnya. No use anyway you using the best forex trading strategy if it does not know when and where to apply them.