What is a Forex Trading Strategy?

1. explanation of forex trading strategy, its types, and the most profitable forex trading strategies listed in simple words for the common man. Let us begin by addressing the most basic question. What is Forex trading strategy exactly? Traders use certain methods that help them in making a decision regarding the buying and selling of any currency pair. A trader is required to use certain trading techniques for the generation of profits. Trading strategies come in different forms. and can often be looked at as manual or automated signals for trading. Manual strategies are when traders manually search for signals. For example, through a computer. Automated strategies are those where there is no human input required and the work is done by an algorithm. The algorithm finishes the job of locating signals and executing them. Experts say that most forex traders lose their capital quickly. This is not surprising. If we go looking for reasons, a blatant one is the absence of trading strategies. While from hearing the words forex trading strategies, one may feel that it is a one fit for all thing- a wiser person would know that forex trading strategies are rather unique for everyone. These words are not easy to understand, but they do not have to scare the average person. It's important for any individual to first realize that long term wealth cannot be acquired without creating a strategy for their own. The profits without that strategy will only be short term. To help you achieve your goal, here's a list of the top forex trading strategies. Candlestick strategy Candlestick trading is one of the most popular and profitable Forex trading strategies. One must keep in mind that this strategy is built on the spring principle of price movement. What you'll essentially require is a chart plus a W1 timeframe. The size of the of the candle bodies has to be estimated. Examples of different currency pairs include AUDCHF and AUDUSD. Now by pick the longest distance from candle's opening to the close. Long position means a bearish candle, whereas short indicates bull. This has to be done within a week of the candle. Scalping This strategy is considered one of the most advanced forex trading strategies. The span of these trades is extremely short, sometimes only being a couple of minutes. Scalpers try to beat the offer as quickly as possible. For profit, they only skim some pips before they exit. This strategy is characterized by the use of charts with low time frames. An example of this advanced forex trading strategy is the Forex-1 minute Trading Strategy. Profits Parabolic It is a popular forex trading strategy that brings people profits. You will be required to set three moving averages

2. and the Parabolic indicator. To make the analysis easier, use different colors. If you are looking to buy a stock, make sure that the Parabolic chart is on the bottom. It should be on top, however, if the position is short. Bollinger Bands Trading Scheme This forex trading strategy utilizes Bollinger Bands, which are tools for technical analysis. They use standard deviation for establishing where the band lies. They're useful for giving immense information on topics like periods of market consolidation and trend continuation, as well as potential price targets. There are three bands in total, and they revolve around SMA, or the simple moving average. the default value for this is 20. The default boundary is 20. Fibonacci trading Fibonacci Retracements are another check this out profitable forex trading strategy traders use. These are generally used for the identification and trading of the support and resistance levels. These are helpful in locating exactly where orders for market entry should be placed. Many traders prefer the Fibonacci method because it is suited to their own unique trading strategy. The only thing that is used are hard data and there is almost no emotional interference. A trader can use these strategies for both short and long term trades.