If you aim to be a successful forex trader, you have to be aware of what forex strategy means and how to find the forex strategies that actually work.
Forex strategy is an analysis carried out by a market trader to make an important choice of whether to purchase an asset or not. Every forex trader requires one or several forex strategies to get successful in this area. Fortunately, it is possible to find some of them in the Internet. Traders can choose their best forex strategy for consistent profits and purchase it, or they can utilize a free online strategy. Both variants, free and paid, can work. However, it is important to spend some time testing the strategies. A trader should take into consideration their trading style and personal qualities to be confident that a chosen strategy works perfect for them and can bring profit.
It is a well-known fact that one and the same forex strategy can be winning for one trader but become failing for another one. As a result, the process of choosing the appropriate forex strategies that actually work is crucial. However, if there are some problems with making a choice, you may rely on the experience of a great number of people. There are long-standing strategies that have proved they work well. The best forex strategy for consistent profits, can be seen in the list below.
There are at least fifteen strategies proved by widely experienced people.
Currency analysis strategy is perfect for newbies because it is pretty simple and infallible. It includes two methods to conduct the investigation of the market movements. The first one is technical analysis. It takes into consideration the currency pairs to discern trends and calculate changeability of a certain currency. This data helps a trader to detect purchasing and selling signals.
The second method is fundamental analysis. It does not evaluate the currency pairs like technical analysis. It requires a thorough analysis of various outside factors, like an economic stability level of a certain country, unemployment rate, political situation, etc. If you use this information in a proper way, you will be able to foresee changes in the market.
Day trading system. Usually, newbies perceive it as the best forex strategy for consistent profits. However, experienced people also admit its convenience. According to it, traders make many trades during a day, but you must abolish your positions/exit the trade before the working day is ended and the market is closed. Even the smallest fluctuations over the day can bring great profits. It is considered to be quite a risky strategy. However, there are many technical indicators that can help trade profitably.
Range trading strategy is also perfect for newbies because it helps learn market operations. The evaluation of the average price fluctuations is vital for traders. This information gives an opportunity to find support and resistance zones.
Ichimoku cloud trading strategy is built on trend monitoring. It has a complicated chart that consists of four elements. One of the elements is called the cloud. This strategy also helps foresee the changes that are going to happen in the chart.
Pop and stop strategy is focused on chasing the price. Apart from this, it is looking for the breakouts because it can bring profits. Unfortunately, some traders often miss a chance because the price gets away. As a result, traders start chasing the price, which is also not good. Moreover, such a choice may leads to awful consequences. This strategy can become the best forex strategy for consistent profits for those who aim to make money by trading breakouts. It can show whether the price will keep changing in the same direction.
London hammer trading strategy is established on the rejection bar or hammer. This strategy has got its name from the London market. It is related to the period of time of fluctuation that follows the opening of the market. Successful usage of London hammer relies on determining resistance and support levels in the candlestick chart. When the candlestick length surpasses the resistance, and the candlestick wick of the bottom side passes the support, you need to sell.
Forex overlapping Fibonacci strategy is among the favorite systems of many experienced traders and is considered one of the forex strategies that actually work. On its own, this strategy is not very reliable. However, if you use it together with the confirmation signals, you can get good profit.
Bladerunner strategy is focused on finding entries by using pure Price Action. Off-chart indicators are unnecessary, but can be added if a trader needs an additional source of confirmation. In general, it is focused on the price changes. Therefore, candlesticks, support and resistance zones, and pivot points can be very beneficial. In most of the situations, this strategy utilizes a 20-period EMA. It is better to use this strategy for short-lasting charts.
Bolly Band Bounce strategy is based on the reversion to the mean principle. There are three effective ways to use it. The first way is organized by candlestick patterns used to confirm that prices will bounce off the outer bands. The second way can be accomplished by using divergence. Divergence is identified by the comparing the highs or lows of the oscillator. The third way can bring success if Bolly Band Bounce strategy is used at the confluence of resistance and support levels.
Forex dual stochastic strategy is based on using two scholastic trading systems as the usage of one system usually doesn’t bring desired results. To become effective, it should include two systems. If a trader uses a slow oscillator with the fast oscillator, it will be possible to find trading opportunities. The trader gets a signal when slow and fast oscillators are at or near the specific limit values.
Daily Fibonacci pilot strategy is focused on getting entries by using standard Fibonacci retracements together with the daily pivot levels. In general, this strategy helps to know the information on where and when market keeps or reverses. Fibonacci levels play a role of support and resistance zones.
Drop and stop strategy is considered the best forex strategy for consistent profits. When using it, a trader needs to deploy it in the highly liquid forex currency pairs because they have enough support for the rally to carry on. However, the trader also needs to watch the forthcoming news that can have a great impact on market sentiment.
Rangebound trading strategy determines stocks traded in channels. A trader needs to find main support and resistance prices by using technical evaluation, and then purchase stock at the minimum level of support or sell stock near resistance. It can be needed to repeat the actions of purchasing and selling a few times until the stock breaks out of the channel. However, it is vital to remember that when it breaks out, it usually leads to a large change of the price. If this direction isn’t advantageous for a trader, he/she can lose.
Swing trading strategy is among the finest forex strategies that actually work. A trader holds his/her positions longer than 24 hours. Usually, traders, who use this strategy, hold a stock from a couple of days to a couple of weeks. The answer to success when utilizing this strategy is an ability to choose the necessary stocks. The best decision here is one of the large-cap stocks. Traders wait for the necessary stock to hit the baseline and confirm the direction of the stock before making their moves.
Momentum trading strategy is built on capturing gains through the thorough analysis of an asset’s momentum. It is a long-lasting strategy. Traders hold a stock from a couple of weeks to a couple of months. It makes an assumption that the current stock course will continue into the future.
You have just read about forex strategies that actually work. However, it doesn’t mean that there are no good strategies left - it is just impossible to mention all of them in one article. Apart from this, the personal approach also plays a crucial role when a trader has a task to figure out the most beneficial stratagies. Rely on your personal style when making a decision.