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When it comes to price patterns, the most important concepts include ones such as support and resistance. Put simply, these terms represent the tendency of a market to bounce back from previous lows and highs. Support is the market's tendency to rise from a previously established low. Resistance is the market's tendency to fall from a previously established high. This occurs because market participants tend to judge subsequent prices against recent highs and lows.
Sometimes a market breaks out of a range, moving below the support or above the resistance to start a trend. How does this happen? When support breaks down and a market moves to new lows, buyers begin to hold off. This is because buyers are constantly noticing cheaper prices being established and want to wait for a bottom to be reached. At the same time, there will be traders who are selling in panic or simply being forced out of their positions.
Traders who have chased the price as it bounces upward and have often suffered losses because of a sudden reversal would want to keep this strategy in their minds when trading currencies. By employing this simple strategy, they can determine whether the price will continue in the breakout direction or not. This helps them to increase their profits or reduce losses.
Forex trading requires putting together multiple factors to formulate a trading strategy that works for you. There are countless strategies that can be followed, however, understanding and being comfortable with the strategy is essential. Every trader has unique goals and resources, which must be taken into consideration when selecting the suitable strategy.
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 🙂
One potentially beneficial and profitable Forex trading strategy is the 4-hour trend following strategy. However, the 4-hour timeframe makes it more suitable for swing traders. This strategy uses a 4-hour base chart to screen for potential trading signal locations. The 1-hour chart is used as the signal chart, to determine where the actual positions will be taken.
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.
The forex trading strategy Carry Trade is different from other forex strategies. While most of the Forex trading strategies follow the concept “buy low/sell high”, Carry Trade relies mainly on the difference in interest rate between the currencies. This means that forex traders can make profit even if the market is stable. When employing this strategy, traders buy a currency with a high differential ratio, meaning the interest rate of the currency they buy will be higher than that of the currency they sell.
Scalping in forex is a common term used to describe the process of taking small profits on a frequent basis. This is achieved by opening and closing multiple positions throughout the day. This can be done manually or via an algorithm which uses predefined guidelines as to when/where to enter and exit positions. The most liquid forex pairs are preferred as spreads are generally tighter, making the short-term nature of the strategy fitting.

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.

One potentially beneficial and profitable Forex trading strategy is the 4-hour trend following strategy. However, the 4-hour timeframe makes it more suitable for swing traders. This strategy uses a 4-hour base chart to screen for potential trading signal locations. The 1-hour chart is used as the signal chart, to determine where the actual positions will be taken.


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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.
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