Forex trading strategy

Trade in the financial markets, as any serious business is built on the application of a set of Forex trading strategies. There are many strategies described in traders practice which become classical ones. However, each skilled trader has its own set of Forex trading strategies depending on the situation. A distinctive feature of an experienced trader is its own set of strategies and their regular use for achievement of success.

Forex trading strategy may depend on many factors. For example, the type of financial active, the size of a controlled deposit, time horizon, psychological aspects of the trader and his personal perception of risk. To be successful and receive regular profits from trade investor must create their own forex trading strategy, test it and, equally important, apply it regularly.

Forex trading strategy is a set of rules for the transactions. These rules are formulated by trader, regularly tested and applied. A set of Forex trading strategies will keep trader from excessive stress of uncertainty, of hasty decisions that might harm the deposit. Forex trading strategy should not only help the trader to go to the market at the right time and in the right place (this is called planning entry point), but also help him to close the position with maximal or planned profit.

Good forex trading strategy contains not only strict rules for trade. At the same time it must be flexible and adaptable to changing market conditions, which is a not fallen asleep scheme, but almost a living organism.

Overall, forex trading strategy should or may contain:


• a set of tools on which you will trade;


• method of analysis (technical or fundamental), by which trader will be guided;


• Time trading interval: weekly, daily, intraday;


• rules to work only on the trend, or against it;


• use of figures of forex technical analysis;


• use a candle forex analysis, etc.

Can I use strangers Forex trading strategies?

Scalping Forex strategy or lie

Scalping the forex market is something that all new traders aspire to do. It is however not easy and requires allot of concentration and discipline.

Once you decide on a set you are going to use you will need to spend a few months religiously for a couple of hours a day trading on demo until you get to know your setup and a feel for scalping it.

A popular way to scalp the forex on M1 charts is to use hull moving averages. Plot the following WMA's (Weighted Moving Averages) on your chart: 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 120, 130, 140, 150, 160, 170, 180, 190, 200, 210, 220, 240. Now set price to a line on Average or, if you don't have that, set it to line on Close. Set all the WMA's to one color that is different to price.

This will create a pretty chart. Using these WMA's you can easily see the strength of a trend, you will notice that price tends to retrace back and forth from the moving averages.

What we are looking for is resistance in a up trend or support in a down trend in the form of double top or something similar. Once you find this area wait for a convincing break of it following the trend and then enter to scalp part of the move.

This method takes practice, don't expect to be able to pull it off straight away, open a demo account with a broker that offers spreads of a pip or less and trade every day at the same time for at least two months. I guarantee you will see great improvements as you become familiar with the setup and the flow of the market.

Best forex article

One of the successful tools for the forex trading system is forex charts. After you have practiced forex charts on your trading for sometimes, you then can distinguish several different patterns that arise which will give you some ideas of when and what to do during your trades. But the main purpose of using forex charts is to signify you when will major trends mostly to show up before it actually happens so that you are more than ready to catch them.

Forex charts offer help to the forex traders in term of making available for you a presentation visually of currency price volatility. There are a variety of events affecting the currency price like interest rates, bank policies, politics, unexpected natural disasters, at anytime within a day.

Forex charts are supplied by the brokers to assist the traders when they try to anticipate in which trend movement direction the currency price is likely to go and when it will happen. Some free or paid forex advice websites supply their members with forex reports or forex forecast newsletter which derived from the use of forex charts and forex technical indicators on a daily basis.

A variety of forex charts are there for forex traders to make use of and analyze. For the forex trader beginner, there also some forex charts that are very simple with only a few of forex signals and indicators while for the experienced traders there are about 30 to 40 live and real time forex signals or indicators available via online for them to analyze fast and precisely.

Some forex traders think that to come up with precise prediction of the currency price, they need a lot number of indicators, but some traders think the other way around. The purpose of analyzing forex charts is the fact that sometimes history repeats itself. Therefore, rather than attempting to predict the future blindly, the traders assess the past in order to give some ideas for their future prediction. This means that the traders will try to predict the currency price movement trends by studying what happened in the currency price yesterday, last week, last month or even last year, and get the most out of this analysis to the best extent that they are capable of.

As you know some of you trade forex in short term, medium term and some in long term. Forex charts can give benefit to all of these types of forex trading if you know how to familiarize yourself with them in accordance to your trading styles, time frame as well as strategies.

Some traders choose to come up with their own forex prediction rather than depending on forex analysis and prediction formulate by the forex brokers or forex advisors. In order to do so, these traders generate their own forex charts for the purpose of assessing their own performance so that they are able to form some forex strategies for themselves which match their trading style and risk appetite. On the other hand, for some traders, even tough they come up with their own forex trading strategies, but they also go along with the advice from forex advisors or forex brokers all together. However, it all depends on your personal views.

Forex charts also form by the connection of between two currency prices, meaning how and to which direction they move are relate to each other. Some currency prices are affecting or get affected by other currency prices which resulting in them moves to the similar or reverse direction in accordance to the connection.

You can make use of the forex charts that can give you details and tell you which currency pairs have strong positive or negative connections. Then you can make a trade signal for another currency pair based on the currency price movement of one currency pair which also can be used as a source for your forex trading prediction.

To be a successful forex trader and make huge profits, your trading strategies should not only based on a good knowledge of technical analysis, but also mainly on the capability to study and analyze the forex charts.

However, to study forex charts and be capable of analyzing them and trading signals need skills that you can not be mastered by overnight. This basic skill in forex trading requires your time and effort in order for you to come up with precise currency price predictions. Be careful as there is no such thing of 100% precise currency price prediction. What you are going to do is to get some ideas to help you to know of when and what will happen in the forex market and the currency price trend movement direction more or less which you can use them as your basis for your next trades.

Forex charts alone can not supply you with sufficient data as you need to supplement them with a variety of forex technical indicators such as trend indicators, strength indicators, volatility indicators, momentum indicators, and others.

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This 6 rules of scalper Forex

Over ninety-five percent of professional trader's over the world is a timely scalper.


Scalping for fast small benefits is a very popular Forex trading scheme, requiring immense discipline and focus. True Forex scalpers make between 10 and 100 trades every day. If a trade goes against them they break of quickly instead of holding on and hoping that it will turnround.


The aim of a scalper Forex is to buy or sell a pair of currency at the bid or ask price and then exit the trade quickly when it's in profit by a couple of pips. Using this strategy of taking a small amount of pips out of the market at once, can quickly compound into big gains as long as a strict exit strategy is used to prevent losing trades absorbing all profits.


Generally scalper Forex use the 1 min, 5 min and hourly charts to locate trades that can make them a small profit. Because the scalper Forex is only aiming to make a couple of pips per trade it's essential to use a broker with low spreads and instant execution of trades.


A few things that can improve your chances of being successful as a Forex scalper are:


1. Ensure that you know when news relevant to your currency pair will be released. - Write down the previous days Open, High, Low and Close.


2. Learn some basic candlestick patterns so you can identify them when they occur.


3. Draw in major trend lines, pivot points and support and resistance on both the daily and hourly charts of your currency pair.


4. Determine the major direction for the day, Bullish or Bearish, trading in the longer term direction will help trades to be more successful.


5. Move your stop to break even you are 10 pips in profit.


6. If the trade is taking to long to become profitable or you don't feel comfortable with it, get out.


This 6 rules is very important to all trader's, it doesn't apply to scalpers alone.


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Forex scalping strategy

Forex scalping is a trading strategy in which the trader makes dozens or even hundreds of trades daily, looking to capture a few pips per trade. Generally, scalpers stay in trades for less than a minute, bolting as soon as their position captures a few pips.


Brokers do not look kindly upon scalpers, as many times scalpers will exit a position before the dealing desk has time to deal your order. This means that the brokerage has to eat the position-a successful scalper will consistently earn money-money that comes directly from the brokerage's pocket.


To avoid this conflict of interest between scalpers and the brokerages, scalpers often trade with electronic communication network (ECN) brokerages, which circumvent the dealing desk allowing online traders to trade directly with one another. ECN brokerages usually have less liquidity than traditional dealing desk brokerages and charge a per trade commission, but their pip spreads are narrower.


To be a successful online Forex scalper, traders must follow strict risk management rules. Because the scalper grabs only a couple of pips at a time, one big loss can wipe out dozens and dozens of careful, meticulous trading. Traders should be sure to use stop loss orders, ensuring that the profit/loss margin on each trade is very small.