Trading Strategies

Collection of custom forex trading strategies. Read our detailed strategy review and set ups.

A simple Fibonacci Swing trading strategy

A simple Fibonacci Swing trading strategy

Trading Strategies
Some of the most profitable and consistent trading strategies are often those that are simple. The simplicity of the trading system is what puts off many traders. But of course this is a general tendency where traders think that the more complicated a trading system is, the better it performs. The Fibonacci swing trading strategy is perhaps the most simplest of trading strategies that uses the most minimal of indicators (2 Moving averages) and the Fibonacci retracement tool. The strategy works best on the 4-hour timeframe and is ideal for swing trading with an average trading hold period lasting for atleast a week. Fibonacci Swing Trading - Chart Set Up For the chart set up, we make use of the H4 time frame with two moving averages plotted. 100 MA (which replicates a 20 period weekly...
Hikkake Pattern – Bollinger Band trading strategy

Hikkake Pattern – Bollinger Band trading strategy

Trading Strategies
Price action trading can be a rewarding trading strategy for traders who truly understand how the markets work. While there are many stand alone price action trading patterns and strategies such as shorting a bearish engulfing pattern or going long on a Piercing Line pattern, the problem is that these patterns which are based off just two price bars do not have a good success rate. Of course, any trader worth his salt would know not to trade purely based on candlestick patterns. With the Hikkake pattern, which comprises of 3 bars, the odds of having a successful trades are much higher, especially when combined with Bollinger Bands. The bands, as we know are used to measure volatility and is based on the concept of mean reversion. Combining price action with a pattern such as Hikkake ...
Trading the Hikkake Pattern

Trading the Hikkake Pattern

Trading Strategies
The Hikkake pattern is a Japanese terminology and refers to 'trick'. It was discovered by Daniel Chesler, CMT and has become a popular trading pattern for traders. The hikkake pattern can be identified most easily on a bar chart as well as on Point and Figure charts. It is purely based on price action and is used as a reversal to the trend as well as a continuation pattern, depending on where it appears on a chart. One of the simplicity of trading the Hikkake pattern is that it takes three price bars to identify the pattern and thus makes for a robust trading strategy. However, trading purely based off the Hikkake pattern isn't profitable in itself. But when combined with existing methods, it can prove to be very valuable. Understanding the Hikkake Pattern The Hikkake pattern is made up ...
Trading the Flag patterns the right way

Trading the Flag patterns the right way

Trading Strategies
In the realm of the many different types of chart patterns, the flag patterns presumably fall into the category of one of the most safest chart patterns to trade. The reasoning behind this statement comes from the very definition of flags (and pennants). Definition of the Flag Pattern A flag (Bullish or Bearish) is indicative of a continuation of the prevailing (underlying or the main) trend. When a flag pattern is identified on the chart, it usually points to a pause in a rally creating a tight range type of price action. This pause usually results in a break out as price tends to resume its previous trend. Unlike other chart patterns such as the famous Head & Shoulders, which generally points to a reversal of trend (or in some cases as a continuation pattern), it is relatively d...
How to use RSI to determine trends

How to use RSI to determine trends

Trading Strategies
Determining trends is one of the basic blocks of technical trading. As the saying goes, the trend is your friend. Trading without knowing what the prevailing trend is can prove to be disastrous. A simple way to define a trend is one where price makes higher lows and higher highs in an uptrend and when price makes lower lows and lower highs, it signifies a downtrend. However, determining trends depends on many factors, one of the most important and often a point of confusion is the time frame the trade is looking at. It is well possible to see an uptrend on a daily time frame, while the one-hour charts might show a downtrend. In order to overcome this 'trend paralysis' it is often advised that traders should identify the trend on higher time frame and trade in that direction. A simple wa...