This strategy is employed by forex traders as a long-term plan to make the trades profitable. The indicator mainly uses the ‘Pullback’ and the ‘Trend’, both of which are fundamental in nature. In order to have a complete understanding as to how this strategy works, traders must be familiar with the more fundamental concept called ‘the trend’. It is very difficult to explain each individual price change and determine a pattern as there will be many of them. Traders need to look at the bigger picture in order to see trends. The three key Fibonacci numbers that traders should always remember are 0.382, 0.5, and 0.618. They should also keep in mind 0.764 and 0.236.

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.
It's important to remember when looking at forex that a higher currency makes a country's exports more expensive for other countries, while making imports cheaper. A lower currency makes exports cheaper and imports more expensive, so foreign exchange rates play a significant part in determining the trading relationship between two countries. There are a variety of factors at play in this relationship and they all contribute in some way to whether the strength of a currency declines or improves in relation to another. Understanding the influencing factors gives traders insights they can incorporate into their forex trading strategies. 
Any nation’s central bank, adjusts the rates of interest from time to time in order to contain or curb the inflationary trends. This, in turn, has a definitive effect on the currency market and traders assume trading positions accordingly. The central bank of a country does not act as it is a solid body. The interest rate is increased or decreased based on the vote cast by the members of the monetary policy committee. The number of members monetary committee varies from one bank to another. If the interest rate is cut, there will be more money in circulation. This makes it cheaper. If the interest rate is hiked, its value increases.
GAIN Capital recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. 
Trend-following systems require a particular mindset, because of the long duration—during which time profits can disappear as the market swings—these trades can be more psychologically demanding. When markets are volatile, trends will tend to be more disguised and price swings will be greater. Therefore, a trend-following system is the best trading strategy for Forex markets that are quiet and trending.
What happens when the market approaches recent lows? Put simply, buyers will be attracted to what they regard as cheap. What happens when the market approaches recent highs? Sellers will be attracted to what they view as either expensive, or a good place to lock in a profit. Therefore, recent highs and lows are the yardstick by which current prices are evaluated.
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.
The information on Forex Factory is sourced in from Fair Economy and relayed in real time. Micro movements are also monitored by the broker partners of the platform. Forex Factory follows standard candlestick charts of multiple durations ranging from 1 minute to 1 month. There are 28 forex instruments available to trade on Forex Factory that are offered by its different broker partners.
The best forex traders swear by daily charts over more short-term strategies. Compared to the forex 1-hour trading strategy, or even those with lower time-frames, there is less market noise involved with daily charts. Such charts can give you over 100 pips a day due to their longer timeframe, which has the potential to result in some of the best forex trades.
Why should you use Learn to Trade to learn Forex trading? That’s simple: we are a credible, well-established organisation that exists to educate people on Forex trading strategies. Our Forex trading training is second to none and will give you the foundation you need to achieve success in the high-opportunity world of currency trading. Every course is supported by our knowledgeable team of experts, who guide and support you throughout your learning experience. Not only that – you’ll get to take advantage of our live trading floor to get some hands-on experience. Getting a feel for what it’s like, while you have experienced traders around to help you, is a valuable opportunity that will help you get the confidence you need. Register now for your Forex trading tutorial and workshop!
GAIN Capital recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. 
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.
×