Forex Factory Forums: The ability to connect with other online members is a great way to maximize collective learning which can help new and expert traders alike. The Forex Calendar is also a great tool when it comes to finding meaningful opportunities in the market. You can see the total number of online users, make friends, and gain popularity by publishing helpful posts. There are many High Impact members who are widely followed on this forum.
Many forex traders start with a simple trading strategy. For example, they may notice that a specific currency pair tends to rebound from a particular support or resistance level. They may then decide to add other elements that improve the accuracy of these trading signals over time. For instance, they may require that the price rebound from a specific support level by a certain percentage or number of pips.
Investing in CMC Markets derivative products carries significant risks and is not suitable for all investors. You could lose more than your deposits. You do not own, or have any interest in, the underlying assets. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Spreads may widen dependent on liquidity and market volatility.
Using the (CCI) as a tool to time entries, notice how each time CCI dipped below -100 (highlighted in blue), prices responded with a rally. Not all trades will work out this way, but because the trend is being followed, each dip caused more buyers to come into the market and push prices higher. In conclusion, identifying a strong trend is important for a fruitful trend trading strategy.
Many forex traders start with a simple trading strategy. For example, they may notice that a specific currency pair tends to rebound from a particular support or resistance level. They may then decide to add other elements that improve the accuracy of these trading signals over time. For instance, they may require that the price rebound from a specific support level by a certain percentage or number of pips.
Forex traders evaluate currencies and the countries much like how equities and companies are evaluated to get a clear idea of the currency’s value. The value of a currency changes due to many factors such as economic growth of the nation and its financial strength. All this information is analyzed by the forex traders to evaluate the value of its currency. Fundamental trading strategies cannot be easily mastered by a newbie forex trader. Given below are some trading methods that use fundamental analysis.
Highest profits are realized only when the best forex trading strategies are employed by the forex traders. There are many time tested forex strategies that can be used by serious traders. Whereas some of them are based on the effect of the current political and economic scenarios of a country, some others rely on charts and numbers that are based on past performances of the forex market. All the strategies that are explained briefly in this article have different levels of complexity. It is also important to note that whatever may be the strategy that the forex trader wants to apply, the best effects occur only when the trader has sufficient knowledge and experience in the field. This article aims to familiarize the readers with a few well-known forex trading strategies.

Hi Rayner reading through, I come to realize without any doubt I am a swing trader, due to my full time a very demanding job which I would like to be knowledgeable and profitable with trading to catch a break. My question here is since I know what kind of trader I am and I like the trend following strategy, how can I create a trading plan that as I follow to the T, will give me an edge as u always say, in the market.

The profit target is set at 50 pips, and the stop-loss order is placed anywhere between 5 and 10 pips above or below the 7am GMT candlestick, after its formation. This is implemented to manage risk. After these conditions are set, it is now up to the market to take over the rest. Day Trading and Scalping are both short-term trading strategies. However, remember that shorter term implies greater risk, so it is essential to ensure effective risk management.


Foreign exchange (forex) or FX trading involves trading the prices of global currencies, and at City Index it is possible to trade on the prices of a huge range of global currencies. Currency trading allows you to speculate on the movement of one currency against another, and is traded in pairs, for example the Euro against the US Dollar (EUR/USD).
To what extent fundamentals are used varies from trader to trader. At the same time, the best FX strategies invariably utilize action. This is also known as technical analysis. When it comes to technical currency trading strategies, there are two main styles: trend following, and counter-trend trading. Both of these FX trading strategies try to profit by recognising and exploiting price patterns.
Investing in CMC Markets derivative products carries significant risks and is not suitable for all investors. You could lose more than your deposits. You do not own, or have any interest in, the underlying assets. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Spreads may widen dependent on liquidity and market volatility.
Disclaimer: 7 Binary Options will not be held liable for any loss or damage resulting from reliance on the information contained within this website. The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author. 7binaryoptions.com is only a website offering information - not a regulated broker or investment adviser, and none of the information is intended to guarantee future results.
Divergence is a tool that helps the traders to learn the price behavior of the currency. This analysis generates patterns that will help to predict the direction of movement of the currency rates. Divergence, a leading indicator, helps traders to significantly increase their profits. This is because the likelihood of trading in the right direction and at the right time increases if this indicator is used along with others such as Moving Averages, Stochastics, RSI, Support and Resistance levels, etc.
Currency markets are important to a broad range of participants, from banks, brokers, hedge funds and investor traders who trade FX. Any company that operates or has customers overseas will need to trade currency. Central banks can also be active in currency markets, as they seek to keep the currency they are responsible for trading within a specific range.
The profit target is set at 50 pips, and the stop-loss order is placed anywhere between 5 and 10 pips above or below the 7am GMT candlestick, after its formation. This is implemented to manage risk. After these conditions are set, it is now up to the market to take over the rest. Day Trading and Scalping are both short-term trading strategies. However, remember that shorter term implies greater risk, so it is essential to ensure effective risk management.
Investing in CMC Markets derivative products carries significant risks and is not suitable for all investors. You could lose more than your deposits. You do not own, or have any interest in, the underlying assets. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Spreads may widen dependent on liquidity and market volatility.
Trade Explorer: A web-based interface that allows traders to monitor their trading activity. The Explorer maps all your trades and forms insightful graphs out of them. It uses advanced graphing technologies, auto-synchronizing, and equity/balance controls to manage risks and learn from past mistakes. It also helps traders understand their trading style and understand what works for them.
I have been totally blown away by all of the information you have been providing us! I have been getting my trading education over the past 11 months and it always seems that people will only give you part of the information and always leave out the most important parts. And I am talking about information that I am paying for! You my friend give us the full meal deal and we are so grateful for that. You Rock!!
Like most technical strategies, identifying the trend is step 1. Many scalpers use indicators such as the moving average to verify the trend. Using these key levels of the trend on longer time frames allows the trader to see the bigger picture. These levels will create support and resistance bands. Scalping within this band can then be attempted on smaller time frames using oscillators such as the RSI. Stops are placed a few pips away to avoid large movements against the trade. The MACD indicator is another useful tool that can be exercised by the trader to enter/exit trades.
To what extent fundamentals are used varies from trader to trader. At the same time, the best FX strategies invariably utilize action. This is also known as technical analysis. When it comes to technical currency trading strategies, there are two main styles: trend following, and counter-trend trading. Both of these FX trading strategies try to profit by recognising and exploiting price patterns.
Currency markets are important to a broad range of participants, from banks, brokers, hedge funds and investor traders who trade FX. Any company that operates or has customers overseas will need to trade currency. Central banks can also be active in currency markets, as they seek to keep the currency they are responsible for trading within a specific range.
Stochastics are then used to identify entry points by looking for oversold signals highlighted by the blue rectangles on the stochastic and chart. Risk management is the final step whereby the ATR gives an indication of stop levels. The ATR figure is highlighted by the red circles. This figure represents the approximate number of pips away the stop level should be set. For example, if the ATR reads 41.8 (reflected in the last ATR reading) the trader would look to place the stop 41.8 pips away from entry. At DailyFX, we recommend trading with a positive risk-reward ratio at a minimum of 1:2. This would mean setting a take profit level (limit) at least 83.6 (41.8 x 2) pips away or further.
Strong trending markets work best for carry trades as the strategy involves a lengthier time horizon. Confirmation of the trend should be the first step prior to placing the trade (higher highs and higher lows and vice versa) – refer to Example 1 above. There are two aspects to a carry trade namely, exchange rate risk and interest rate risk. Accordingly, the best time to open the positions is at the start of a trend to capitalise fully on the exchange rate fluctuation. Regarding the interest rate component, this will remain the same regardless of the trend as the trader will still receive the interest rate differential if the first named currency has a higher interest rate against the second named currency e.g. AUD/JPY.
hey buddy, right now im swing trader and as you said it has higher win rates and barely 1 to 1 risk to reward, i think position trading is fine for me in the way that i just give 20% of my portfolio to it cause im in stock market, in the other hand your transition trading got my attention and im gonna check that out, with higher win rate and that insane risk to reward it will be something 🙂
Strong trending markets work best for carry trades as the strategy involves a lengthier time horizon. Confirmation of the trend should be the first step prior to placing the trade (higher highs and higher lows and vice versa) – refer to Example 1 above. There are two aspects to a carry trade namely, exchange rate risk and interest rate risk. Accordingly, the best time to open the positions is at the start of a trend to capitalise fully on the exchange rate fluctuation. Regarding the interest rate component, this will remain the same regardless of the trend as the trader will still receive the interest rate differential if the first named currency has a higher interest rate against the second named currency e.g. AUD/JPY.
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