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Best Forex Trading Strategies

Best Forex Trading Strategies

31.03.2021

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TOP TYPES OF TOP STRATEGIES FOR FOREX

Any strategy requires testing and shortcuts, regardless of whether you bought it ready-made or developed it yourself. In robust systems, there is one drawback – it is not a fact that the purchased for money (that is, more, not small) model will work so successfully in your case. Free in this sense is profitable – you spend only time on their testing and grinding. And in order to save it, we have compiled in this article strategies, calculated on the basis of a different level of training.

Long-term strategies

This is when the open positions are held for several weeks or a whole year.

Suitable for tough newbies and experienced traders with a concise trading style. Convenient to those that you can safely and for a long time to observe the market, not to worry about every change in the current situation on the market.

The result will be small, but stable.

Medium-duty strategies

Positions are kept open for 1-2 days or several weeks. At that time, they usually get from 50 to 200 or more points of profit – this depends on the experience of the trader, the presence of an active trend, and the volatility of the market. The majority of chickens who trade on the basis of focus consider their own mid-term strategies.

They are based on technical analysis, about which more details will be found below.

Short-term strategies

The most profitable and at the same time the riskiest – transactions are closed within one day, hour, and even minutes. At this time, it is difficult to predict the price movement. There are those who cope with this and extract profit on a regular basis, using 2 methods – scalping and intraday.

Sculpting

This includes trading operations lasting no more than 2 hours. And in general, Forex sculptors manage to close transactions from 5 to 15 points within 1-5 minutes or even a few seconds. I mean that in one trading session there are a lot of transactions with a small profit, which in the end gives a normal amount for a day. And this figure outweighs commissions and losses.

Technological catalogs are not suitable for newbies –the level of cohesion and cold blood should be the highest, this is not every professional under the force. No one can trade in this way for a long time – the psycho-logical pressure on the top is just unrealistic because the engine quickly rattles and turns This is why a few traders love sculpting.

How to choose the best Forex strategies

What is the best Forex strategy – there is no single answer

Each trader chooses a strategy himself, based on his free time and appetite for risk. This means you need to consider your personality and come up with a strategy that suits you.

What may work very well for one trader may be totally unacceptable for another. Conversely, a trading strategy that has been underestimated by others may be right for you.

Therefore, only in the course of testing various strategies and approaches can you find the one that suits you and reject those that do not suit you.

One of the key aspects to consider is how much time you can devote to trading.

The different trading styles, from trading short timeframes to trading long timeframes, have been widely used in recent years and are still a popular choice from the list of the best Forex trading strategies in 2020.

  1. Scalping is a very short-term trades that take a few minutes to open. The scalper strives to quickly make a profit of several points. Tick ​​charts are commonly used, such as those found in the MetaTrader 4 Supreme Edition.
  2. Intraday trading – these are trades that remain open throughout the day, as the name suggests. This eliminates the potential for adverse effects from large pulses. Daily Forex strategies (or intraday Forex strategies) imply that trades can only last for a few hours and the timeframe can be set for one or two minutes.
  3. Swing trading is positions held for several days in order to profit from short-term price formations.
  4. Positional trading is when a long-term trader usually looks at the charts at the end of the day.

Forex trending strategies

Sometimes the market goes out of the range, moving below the support level or above the resistance level, in which case a trend begins. How does this happen?

When support breaks and the market moves to new lows, buyers start to hold on. This is due to the fact that buyers constantly see that lower prices are being set and want to wait until the minimum is reached.

At the same time, there will be traders who open trades in panic or simply have to close their positions. The trend continues until the sale is exhausted and the confidence returns to buyers that prices will not decline further.

Trading with a trend involves opening a position after prices have overcome resistance levels and sell after they have fallen from support. Trends can be dramatic and long-lasting.

Due to the scale of the movements involved, this type of system may be the most successful Forex trading strategy. Trend-based systems use indicators to tell when a new trend might start, but of course, there is no surefire way to know.

Advantages of the Forex indicator – if the indicator can tell the difference between the time when there is a possibility that a trend will start, you increase the odds in your favor. A situation that can show us that a trend is starting to form is called a breakout.

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Best Forex Trading Strategies

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