What is a Forex Trading Strategy?

1. Simple explanations of forex trading strategies, their types and the most profitable Forex trading strategies for the average man. Let's start by answering the most basic of questions. What exactly is a Forex trading strategy? Traders use certain methods that help them in making a decision regarding the buying and selling of any currency pair. To generate profits, a trader must use specific trading techniques. Trading strategies are of various kinds, and can often be looked at as manual or automated signals for trading. Manual strategies are those where traders manually look 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. It is unsurprising that according to experts, a majority of forex useful source traders end up losing their capital very quickly. 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. Profits without a strategy are only 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. This strategy is based on the principle of spring movement. You'll need a chart and 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. Short position indicates a bullish candle. This has to be done within a week of the candle. Scaling This strategy is considered a very advanced trading strategy among all the 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 This is another typically adopted forex trading strategy which fetches people profit. Three moving averages will be

2. needed, along with the Parabolic Indicator. Use different colors to help make the analysis more convenient. In case you want to open a buy deal, ensure that the Parabolic is at the bottom. If the position is long, it should be at the top. Bollinger Bands Trading Scheme This forex trading strategy utilizes Bollinger Bands, which are tools for technical analysis. The standard deviation is used to determine where the bands are located. These bands are useful in determining topics such as periods of consolidation, trend continuation and 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. There are two default boundaries- lower band and upper band, and the price generally lies between these two. Fibonacci trading Fibonacci Retracements are another profitable forex trading strategy traders use. They are used to identify and trade the levels of support and resistance. They are useful in determining where to place orders for the market. Since every trader has their unique strategy, many prefer the Fibonacci style for how it suits them. 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.