There are numerous successful Forex strategies that are in use by experienced traders every day. Here are some example for you.
Breakout and Range Trading Strategies
Ever heard of the early morning breakout trading strategy? This is one of the most simple and commonly used trading patterns available to Forex traders. There are many buy/sell orders that flood the market and one must give this strategy 30 to 60 minutes until you decide to trade in the same direction of this particular breakout.
We recommend going for the 30 minute range, as it’s a lot more volatility within the given timeframe. With many of the setups offered, EMRB usually works with the stocks which have increased or decreased over 10%. A stock should trade in a range that is smaller than the daily average. For buying, the low needs to be tested prior to escalating.
It’s important that individuals know how to read the order flow and the time zone they trade within. Also, volume relationships are very important. The order flow is actually the time and sales window. Heavy volume is required but it must be the correct type of volume. Individuals always want to look at heavy bids which swarm the market instead of the offers at these particular levels.
Also, you should pay attention to what time of the day it is. Different times mean that different traders are coming in. These are just a few things when it comes to the strategy of the range and breakout trading.
Trend Trading Strategies
Trend trading means to analyze the Forex market, based on how long a trend has been going for. This can be a few days, a week, months or longer. Many people will find a company that is doing well and begin to invest their money. Before they do this, they will look at the past of the company to see if it has been steadily going up. For example, one company may have a few ups and downs during some days but ever since 2000, it has been going up by 40% every year.
Imagine how much you could make just by following this pattern. Some people who do this will stay long term in Forex. Of course, a trader will need to find out why this pattern is occurring. The direction of the trend is very important and can guarantee a successful trade.
These three strategies are the most popular in Forex trading but there are also others that you can learn about. We recommend that you take a full Forex trading course on strategies. See if you can get a list of what techniques they teach before you buy or download the course. A paid course is recommended because you will learn more and there won’t be many ads within the course.
Paid courses usually have videos that explain the techniques and this is extremely helpful if you are not someone who enjoys reading. There are also courses which include audio tapes to listen to in your car while driving back and forth to work. This is great if you are someone who doesn’t have enough time to learn about Forex trading but still want to get your feet wet. Once you memorize all the techniques, you can apply them to your demo account.
