In any market, a certain strategy can make us more profitable, and this is certainly true in foreign exchange trading.
Here are 20 common forex trading strategies from FinanceWord.
Strategy 1: At the beginning, try to capture 20 points per session, then stop, turn it off, and do an in-depth review.
When you get really good at it, ask for more. Before you become a master of the forex industry, set a 20-point goal and stick to it.
Emphasize the word industry. It’s not a game. It’s your hard-earned money.
Strategy 2: Spend most of your time on the 15-minute chart.
Strategy 3: Before starting a trading session, look at an hour-long chart to figure out the trend as the session transitions and how it is likely to go when the new session begins.
Strategy 4: Look at the 5-minute chart only when you absolutely know what’s going on behind the 15-minute chart, especially if the K-line is elongated or just crossed the pivot point. In other words, is there a reversal on the 5-minute chart that is not yet reflected on the 15-minute chart?
Strategy 5: Don’t stay on the 5-minute chart because it has too much noise and can interfere with your FX trading strategy.
Strategy 6: The law of moving averages on the 15-minute chart: Even if the moving averages are up on the 1-hour chart, if they are down on the 15-minute chart, this indicates that a reversal is coming, but it hasn’t happened yet, and you don’t want to miss what is happening on the 15-minute chart.
Strategy 7: If a moving average moves up or down on a 15-minute chart, but the price tries to move up, sooner or later the price will move down, such as by bouncing back from the pivot point or by a node captured by one of three tools (bar chart, EMA divergence or trendline analysis). The same is true for moving up while the price tries to move down.
Strategy 8: Use only the divergence from the EMA, not the EMA as a buy or sell signal. It is a delayed indicator, too slow for FX.
Strategy 9: A divergence between a moving average on the 15-minute chart is more important than a divergence on the 1-hour chart. A divergence is when the moving average moves in the opposite direction of the price.
Strategy 10: Always protect your money with a 20-30 stop loss.
Probability stops can also be done, but there must be strict discipline, do 10 times you may be wrong 3 times, three times the loss should be kept within 20-30 points, your profit should be much more than a small loss.
Professional baseball players miss 6 times out of 10, lions only have a 20% chance of success, and professional poker players have a 50% chance of failure. Your chances are better than they are.
Strategy 11: When you place an order near a pivot point or an important pattern (such as a double top or trendline breakout), place your stop loss on the other side of the event that makes you move, but not too close, as prices tend to pull back after a breakout.
If you use a 20-30 stop, but 33 is safe to ride out a backdraw, use 33.
The rule is 20-30 points, but be reasonable.
Strategy 12: Stop losses are for insurance purposes, not profit. Of course, you can use a moving stop to protect profits.
Strategy 13: Trading forex requires only four tools: bar chart, EMA divergence, pivot point and trend line analysis.
Be technical, avoid fundamentals, the news is baked into the price, you don’t need to read the news every second.
Reading the histogram includes finding the double top (bottom) or even the triple top (bottom).
Strategy 14: Here comes the hard part: I said the high and low forecast for the next trading session could be M1/M3 or M2/M4, but the trading is grey instead of M1, any combination of M2,M3 and M4, it could be M1/M4,M2/M3 or any other combination of five pivot points.
M1/M3 and M2/M4 are only reference, not fixed. Price is the first indicator, which determines what the high and low will be.
In addition, we should combine the FX strategy with three other tools.
In other words, if the price moved downward from the previous period into the current period and continued downward from M3, then M3 is likely to be the high for the new period, even though the system may indicate that M4 is high.
So the pivot point is used in conjunction with three other tools.
I have seen instances where the price goes down and the new session opens directly through M3, forming a double top at the same time. Here are three indicators that the price is bound to go down. I believe the moving average is also bound to go down at this time, which is one more clue that the new session high has appeared.
Strategy 15:
Started from the four main (EUR/USD, USD/JPY, GBP/USD, USD/CHF) choose a pair of, study the law of it and become an expert, recommend at the start of the selection of the euro against the dollar, as your mastery of the foreign exchange trading strategy to continue to study other three pairs, because in the learning phase themselves can’t be all,
So focus on just one, don’t jump around in four pairs.
Strategy 16: Keep trading records, including good and bad trades, analyze what went right and what went wrong, find out what was missing, and try not to repeat mistakes.
Strategy 17: One important point: If the price opens at the top of the forecast range for the new session (R2 or higher), in other words, in the sell zone (above the central pivot point), and there are other indicators indicating that the price is too high (such as a specific K-line, a divergence or a trendline break), then the price is probably already high for the new session.
Similarly, if the price opens at the bottom of the forecast range for the new period (S2 or lower), or in the buy zone (the area below the central pivot point), and other indicators suggest that the price is too low, the price may be low for the new period.
Strategy 18: Don’t do anything if you don’t have something to do. Don’t do it impulsively or just because you want to.
Do this only when the four tools have a very clear signal.
Strategy # 19: Choosing a currency Trader Choose the lowest midpoint spread in the line.
Strategy 20: Sometimes after a weekend break, Sunday opens with dramatic swings.
Normally, I use Friday’s high/low opening close (OHLC), but if there is a 15-minute swing on the chart on Sunday, I use Sunday’s OHLC to better determine support and resistance levels for the next session.
Of course, this only applies to traders who separate Sunday’s two hours from Monday’s.
The above is just a brief introduction of 20 common foreign exchange trading strategies. In the process of foreign exchange trading, apart from position control and board analysis strategy, the control of foreign exchange time is also very important. What time is more appropriate for us to operate, and how should we allocate our time to the board in 24 hours a day?
Do I need a 24-hour watch?
When is the best time to trade our preferred species?
In the process of trading, we will find some inertia in the aspect of time. However, we have managed the time of foreign exchange trading well and mastered certain foreign exchange trading strategies, so as to avoid unnecessary losses.
