Trading Strategies

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

Trading the Head and Shoulders Price pattern

Trading the Head and Shoulders Price pattern

Trading Strategies
Price patterns is the field of studying some recurring patterns that happen on the price chart, across different markets. Studying price patterns and especially getting familiar with some of the many patterns can build a profitable trading strategy. Most beginners to forex usually tend to find themselves lost in tons of trading indicators, trading systems and lose out on the most basic and easy trading methodology. This article serves as an introduction for beginners to some simple price patterns that traders can test and use and see the results themselves. Types of Price Patterns Of the many kinds of price patterns available, they can all be classified into the following two self explanatory groups: Continuation Patterns Reversal Patterns Bear in mind that when we talk about...

Strategies For Scalping The Forex Market

Trading Strategies
Scalping is the most difficult of all the trading strategies to do profitably as it is impossible for any trader to consistently make money without an edge that gives them an advantage over the randomness in the market. And in the Forex market, as is the case with almost every other financial market that I know of, the smaller the time frame the greater the degree of randomness and the greater the time frame the more significant the effects of an edge tend to be. Scalpers also have the problem that many brokers simply do not like scalpers and will put successful scalpers on dealer intervention or even stop accepting their trades altogether. And if that wasn’t enough, scalping is also the most expensive form of trading because the spread, or the small commission that ECN Forex brokers charg

Forex Trading Systems Introduction

Trading Strategies
Forex trading systems is a term traders come across all the time. In fact, you are almost certain to hear the phrase 'stick to one trading system.' So what are forex trading systems and how do you get one for yourself. To begin with, forex trading systems can be defined as a set of expert advisors or indicators that form a system, which helps you make trading decisions. These trading systems can be either fully automated, making use of expert advisors or can be a set of indicators that give you the buy and sell signals along with trade entry and exit points (in some advanced systems). Do you need a forex trading system? The answer is yes and its quite simple. Take for example if you were trading based on Moving average signals. This is nothing but a trading system, or the fancier ...

Support and Resistance for Trade Entries and Exits

Trading Strategies
Support and resistance levels are key levels where it is possible for the price of a currency pair to experience reversals. As such, they should always be considered whenever a trader wished to make trade entries and exits. A price support is a target price at which falling prices may stall or reverse upwards. Usually, the price of the currency asset will attempt to break through this level and will test it several times, each time being rebuffed. The more the support is tested without a break, the stronger the support. A horizontal line drawn across this price target will form a price support. A resistance level is a price level at which rising prices either stall or retreat from. The more that price level is tested and rebuffed, the stronger the resistance. A line drawn across ...

Trend Following

Trading Strategies
In my opinion, the best trading strategy for trading the Forex market is probably trend following. Different markets behave in different ways and the Foreign Exchange market is one of the few markets left that still tends to experience long and fairly clean trends. Trend following has slowly lost it's effectiveness as a trading strategy on most markets in the last few decades as markets generally only tend to trend well when they are being driven by real economic fundamentals and not by speculation. And as speculators have gained access to ever increasing amounts of capital over the last 20 or 30 years as more and more wealth is poured into hedge funds and the likes the influence of speculators has increased. But speculation still doesn't rule the Foreign Exchange market in the way t...