The vastness of Forex is demonstrated in the number of timeframes traders get to choose from, and an even greater number of strategies to work with. Be it on a short timeframe, or one stretching months, as a Forex trader you can implement various strategies. As flexible as this planning phase gets, there is no proven technique to win a trade. While players are new to currency exchange, everyone is on the lookout for that one perfect plan that will get them a victory.
It is natural in foreign exchange to get tired of practicing the same strategy, worse yet, when it doesn’t bring in the expected results. This leads to traders frequently jumping from one Forex trading strategy to the other. Ultimately, players are stuck between choosing multiple approaches, and at the end of the day, no progress is made!
The following are 4 Forex trading strategies that have been tested against time, and proven to provide a strong trading approach:
1) Bladerunner Strategy
Based on a phenomenal movie of the same name, the Bladerunner is an impeccable EMA strategy. Relying predominantly on market price movements, to construct one requires strong technical analysis. The Bladerunner works best during breakout trading. With a strong combination of moving averages and support/resistance lines if needed, this strategy will work tremendously well in breakout trends. Off-chart indicators aren’t always necessary; however, this boils down to personal preference. With an on-chart indicator and a 20-EMA, you can have yourself a strong Bladerunner plan in place.
What makes it a truly incredible, is that it fits perfectly into any timeframe, and supports all currencies. So long as you plan the entry and exit right, with a keen eye on price movements, you can make good winnings.
2) Bolly Band Bounce Strategy
Forex trading isn’t something that can be done on an estimate; the decisions you make have to be accurate till the last point! Several traders rely on range-bound trading, where prices bounce between specific highs and lows. Trading on ranges, and on trends are the contrasting choices that segregate several approaches in Forex. Trend trading is a more directed approach, with lesser randomness involved. Be it a downtrend, or an upwards trend, several players find it more assuring banking on one of these two, rather than investing in conditions where a currency value shuffles randomly between two points.
This is a Forex trading strategy that requires physical observation of a trade, and where Bollinger bands form for limiting short-term price movements. Looking for even more short-term strategies, read 1 Minute Forex Scalping trading strategy here.
3) Daily Fibonacci Pivot Trade
A combination between Fibonacci retracements and daily pivot levels, these strategies help anticipate breakouts. This chart is typically used for identifying support and resistance. Fibonacci pivots work best when prices are moving closer to them. With an understanding of the past days’ price highs and lows, pivotal points can be calculated precisely. This strategy helps deduce profitable entry points accurately, and is incredibly effective across all charts – be it minute, daily, or weekly!
One of the reasons traders implement Fibonacci strategy, is because of its increased accuracy when it comes to pin-pointing future price movements.
4) London Hammer Strategy
A Forex trading strategy devised solely for London markets, the hammer is one of a kind. Typically when markets open, they display high levels of volatility; the hammer strategy is used to make the most out of this scenario. What traders have to keep in mind is that London markets open at around midnight in New York, so traders participating from there have to proceed with care! Good grasp of candlestick analysis is a must in order to make winnings using the London hammer. Candlesticks help find support and resistance lines.
When the candlestick surpasses resistance limits, it indicates a selling trend; similarly, if it crosses support limits, once again a selling trend is to be followed.
Only when you follow the right Forex trading signals, can you expect to leave with a good profit! As a Forex trader, you can enjoy a lot of flexibility while trading currencies, especially in strategizing. Depending on the timeframe you find most comfortable and profitable, there are numerous strategies like Scalping, Day trading strategy and more you can implement, and enjoy a victorious trade.
The road to achieving Forex trading success may be laden with difficulties, but with a reliable broker by your side, nothing is impossible! Sign up with WesternFX today, and avail our world-class FX solutions! From forex trading strategies to platforms to Forex trading signals, our experts will equip you with nothing but the best, to ensure you emerge victorious in your ventures. Call us today and master the Forex trading!