Both buyers and sellers are virtually linked allowing them to transact businesses with ease. 

Each Forex trade is performed by different financial instruments, like currencies, metals, etc. There are also brokers that are licensed to provide their services on globally.

Price momentum 

1. Forex Price Action Trading Strategies. These are Forex trading systems that are based on price action. Either they can be pure price action trading, which means they only rely on candlesticks and (or) chart patterns or a combination of other Forex indicators with price action.

More Trading Forex Any activity in the financial market, such as trading Forex or analyzing the market requires knowledge and strong base. Anyone who leaves this in the hands of luck or chance, ends up with nothing, because trading online is not about luck, but it is about predicting the market and making right decisions at exact moments. Experienced traders use various methods to make predictions, such as technical indicators and other useful tools. Nevertheless, it is quite difficult for a beginner, because there is a lack of practice.

That is why we bring to their attention various materials about the market, trading Forex, technical indicators and so on so as they are able to use them in their future activities. Here they can find out who are the market participants, when and where everything takes place, check out the main trading instruments and see some trading example for visual memory. Additionally, it includes a section about technical and fundamental analysis, which is an essential trading part and is definitely needed for a good trading strategy.

This pattern maybe found on various time frames but works best on long term charts, especially monthly. When you see it forming on a monthly chart you can be pretty sure that a major tendency shift is at hand and you can prepare for a few years of a different type of trend a trade accordingly. You will see this structure on small time frames too all over the place , but they are not very reliable. I fully described this trading system here. I am convinced that you have to use this method together with a few technical indicators such as RSI or MACD and it is recommended to draw trend lines on important support and resistance areas to see if the pattern forms at those levels.

By no means make it an automated Forex trading system based just on one Forex technical indicator. Trading regular and hidden divergences in currencies Divergence is a mismatch between price action and technical indicator action. In other words, if price goes up, indicator goes down. That is often considered to be a sign of a pending reversal.

In a prolonged swing indicators such as MACD or RSI and a few others start changing direction while price is still going in the same direction. They indicate that market has overstretched itself and a change of tendency is coming. This strategy works well in a range bound market and can cause you problems when there is a long term trend in place market can stay in overbought or oversold area for a long time. Hidden divergence contrary to regular one shows not possible change of direction, but possible continuation of direction.

You can see them below on the chart. One could take advantage of that by waiting for a pullback to finish and re-enter long trades.

Some do Forex hedging to protect themselves from risk in these kind of situations. I hope to expand more on this and other trading techniques when I prepare a full Forex tutorial for beginners. Daily RSI trading There are a lot of techniques that one can apply for making trading decisions with any technical indicator, but I consider RSI to be the best for both long and short term trading systems. For catching bigger moves it is good to use 14 day RSI. One would wait for daily RSI to go above 50 to go long and below 50 to go short.

It works pretty well when markets develop big ranges and swings and not so good when it goes sideways. Check the chart below to see how this type of strategy could have been traded. Bollinger bands trading system Bollinger bands is a pretty powerful indicator and can be used in various types of strategies both long and short term.

I like using the indicator on weekly charts to identify possible resistance and support levels and trade a reversal. You most probably know that John Bollinger does not consider bands to be working as support and resistance, but they fulfill this function when trends exhaust themselves and ranges start.

When there is a prevailing tendency in a market, price slides through BB and one should not expect the indicator to act as support or resistance, but when price finally finds a top and starts going down, or a bottom and start going up, BB start flattening and form a nice channel to trade support and resistance. So, you need for price to hit the same are for the second time to be able to trade a reversal in a BB channel. I heard that some guys include this trading pattern in their automatic Forex robots to identify tradable situations.

Playing with sma simple moving average is probably the most known indicator above all others. Even Dow Jones took it pretty seriously in predicting important stock market shifts some managers of Forex managed accounts use it too. In range bound market I mostly pay attention to 1 hour sma to identify possible breakout levels. What I want to see is a break of two points of resistance and price go up above sma in order to go long and a break of two points of support and price to go below sma in order to go short.

Of course, when a reversal is coming you will see price cross sma on lower time frames 10 min, 15 min, 30 min charts first. Wait for that to happen on 1 hour. It is a more reliable signal. Pivot points This is mostly a day trading strategy that traders use in all financial markets.

When I started trading currencies I used to calculate pivot levels each day, but I switched to swing trading five years ago and do not look at those levels anymore. However, they might be of interest to you if you are a short term trader and search for daily opportunities to trade financial markets. One tries to define the pivot point and a few support and resistance levels for today by calculating open, high, low and close of the previous day price. You end up having a pivot point and three levels of support and resistance 7 pivot points all in all.

A general idea is: Trading usually happens between central pivot point and support 1 as well as resistance 1. Day traders would look for price to go from pivot point till support 1 and reverse there or till resistance 1 and reverse there. As any other strategy it requires various filters such as moving averages, additional support and resistance levels confirmations or some other indicators to avoid bad and select only the best trades.

Conclusion There could probably be as many trading systems as there are traders in the world. You could probably make a list of one hundred or even more methods to trade Foreign Exchange market and they would probably work. The main thing is to adapt any one of them to your individual trading style and your personality.

So, it has been quite a long post on Forex trading strategies. The crash caused unprecedented slippage in Euro and Swiss Franc currency pairs, bankrupting many Forex brokers and leaving a huge number of traders with negative balances. The following Infographic briefly describes the causes, events, market reaction and aftermaths pertaining to the CHF crash.

A look at sites like Forex Peace Army will reveal a plethora of cases where all manner of scams are perpetrated by shady brokers. In one case, a brokerage was found to be a husband-wife operation located in the kitchen of their home somewhere in Eastern Europe. When you consider that most forex traders will have to do business with brokers located in countries far away from theirs, it becomes super important to make sure that the process of choosing a forex broker is one that is done carefully and thoroughly in order to weed out the chaff from the real thing.

Role of Forex Brokers Why are brokers so important in fx trading? Why do traders need to worry about forex brokers anyway? Market access can only be provided through a forex brokerage account, provided by forex brokers. This provides uniformity of trading access to all who trade the forex market, linking a trader on the buy side of the market to another on the sell side of the market.

The brokers act as the bridge between profits generated by traders and the trading process. An influx of these brokers has entered the market making it difficult for traders to choose the best from the lot. The second you start realizing the roles of forex brokers in any foreign exchange trading market, then you start analyzing your position in this investment strategy and your capacity to earn profits.

A forex broker will provide the trading platform, clearing and settlement services, as well as, help provide the liquidity required to complete trades. The biggest challenge with forex trading and your endeavors to find a broker that will satisfy your interest is linked to scam brokers. The role of brokers in forex trading is a process that every trader needs to understand and accomplish.

Without a forex broker, it would be hard for the trader to gain access to new markets. Another underlying course for traders to locate competent forex brokers is access to trading.

Trading platforms are essential because they provide uniformity on trading access. Both buyers and sellers are virtually linked allowing them to transact businesses with ease. Funds are safely deposited in running brokerage accounts where traders can easily access them when executing their trades.

There are several factors that new and existing traders can use in order to distinguish genuine forex brokers from time wasters or misleading firms. Regulation of forex brokers Depending on the country at which the forex broker is based, there are varying regulatory bodies that the trader will observe to ensure that the broker is accredited to run such kind of business.

In the United Kingdom, all brokerage firms are required by the governing bodies to run segregated accounts. Regulation is important because it signifies the financial position of a broker and competence the firm holds into managing client funds. Regulatory agencies are always on the frontline to ensure that forex brokerage firms are in line with these regulations by conducting regular checks.

Regulation is also important in the sense that depending on your residence, there are brokers that you may not be eligible to use for trading. In the US, forex trading attracts strict regulation when compared to other parts of the world. In the US, brokers are only permitted to provide a maximum leverage of In Europe, traders can receive


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Forex trading allows you to buy and sell currencies, similar to stock trading except Apply Online · Video Library · Product Guide · International Offices. 1. Forex Price Action Trading Strategies. These are Forex trading systems that are based on price action. Either they can be pure price action trading, which means they only rely on candlesticks and (or) chart patterns or a combination of other Forex indicators with price action. 

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FREE FOREX TRADING STRATEGIES. When it comes to selecting strategies to trade, you have the choice between buying one off-the-shelf or trawling the Internet for freebies. The trouble with free forex trading strategies is that they are usually worth about as much as you pay for them. Check-out our list of the most successful Forex trading strategies in and choose the one that will work best for you in

Here are four of the most common active trading strategies and the built-in costs of each strategy. (Active trading is a popular strategy for those trying to beat the market average. Mar 23,  · Elliot wave trading would be included in the trend trading strategy. I've said on the first post that this thread is a discussion about the top general categories of proven trading strategies, if you want to delve into the specifics, feel free to do it.

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