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.