Good day, dear readers and blog visitors Deipara.com. In this article I the boiler would be to consider the types of Forex trading strategies. You have to understand that the market is multi-faceted, and while there are plenty of ways to make money on it, just that’s what I want to talk to You.
If You talk to many successful traders, you will find that in your trade they can use multiple systems.This all helps them to diversify their risks and competently to adapt to current market conditions. All kinds of Forex trading strategies can vary greatly from each other, they all have their conceptual strengths and weaknesses.
Let’s more let’s deal with what actually kinds of trading systems can distinguish! I think that for anybody not a secret, for trading any trader first need in their actions to develop a certain consistency.
In General, in this matter, all achieved by a purely empirical method. That is, You need trial and error to develop the approach that will be appropriate for You.
- Trend trading system. All types of strategies Forex can not compare in popularity with these systems. Of course, systems based on motion trend, are the most popular. The whole structure of such systems is based on the fact that the alleged trend is a stable price movement. That is, if the trend is started, it will remain for a long time. As a rule, the vast majority of such systems is based on the Moving Average indicator. But in this case it is necessary to clearly define at what interval You wish to trade. What do we mean? Banal consolidation on the daily interval can be quite a good trend on the time interval. So, this issue is very concerning.
- Trade in the flat. The basic philosophy of such systems consists in the fact that trade is conducted only when price is in a state of flat. In this case, the trader most often identificeret border consolidation, and sells directly from them. For example, when price approaches the upper boundary, you should look for sells when price is nearing the lower boundary – we are looking for purchase.
- A counter trend strategy. In this case, the trader is trying to catch the retracement against the trend. Many may say that this trade is meaningless, because the trend is very strong and can easily carry the position, but the market is not so clear.In fact, the correction can be quite prolonged towards the trend, especially on large timeframes.Thus, it is possible to catch quite a good profit koska. But in my subjective opinion, such a trade requires certain skills, and beginners will not fit.
- Systems based on different patterns. In this case, the trader uses mostly graphical analysis of the market. Roughly speaking, it monitors the education in the conditions of market, different pattern, and after their appearance directly opens a trade position. Patterns can be a huge amount, but, as a rule, the trader chooses the few he understands formations and had trade with them.
- The strategy is based on using wave analysis. Still, you can often find that such traders are called sectarians.In fact, in this case, you use Elliott wave analysis Elliott with all the consequences. The bottom line is that the market moves in waves, and while it has a certain structure to waves.Each individual wave has its own characteristics, and the emergence of a particular wave will largely tell us the change in price movement.
- The strategy based on the breakout of the borders of volatility. In this case, traders calculate the range of price volatility, and work on alternatives. There is a view that carried out the mathematical calculations by which the canal is constructed, that is, in this case, the range of volatility. In his breakout traders just open up a appropriate trading position. In my opinion, this type of trade is not the most productive of all, as it will see many false signals, especially when the price is going to stagnate in one place. In my opinion, this approach is far from ideal!
- Session trade. This approach implies that the trader sells clearly during the development of a particular session, when you use certain currency pairs. For example, the EURUSD currency pair the most good movement shows during the development of the European trading session. But its use during the development of the Asian session is completely meaningless.
- The strategy is based on the use of Fibonacci tools. In my opinion, such systems, at the moment, you can really find a lot. Fibonacci tools are very often used by many traders, it is not surprising that systems of this kind there are many. The vast majority of them are based on the use of the Fibonacci levels, but in my subjective opinion, Fibonacci is only good as a supplementary tool. I personally sometimes use Fibo levels for the sole purpose of confirming the effect of the level of support or resistance.
- Strategy for scalping. It is worth noting that these types of Forex trading strategies are very common among traders.In this case, refers to the fact that the trader is short-term trading. Thus for a short period of time a large number of trades with small profit potential.On average, the transaction closed on the achievement 5-10 points. Of course, it’s not such a big profit, but when such transactions have several dozen, the profit can be very good. I can say that these strategies are not really suitable for beginners, requiring significant skills, and is itself a trade of this kind is extremely tedious.
- The strategy of the combined type. Now personally in my opinion, combination strategies will be the best choice. Why? They will give You the most flexibility to market conditions, which is very, very important! You need to understand that today’s market may be one and tomorrow it will be very different. Accordingly, if You can correctly use several trading systems, You will only benefit!