When trading foreign exchange, it is advisable that you have a good strategy, because it helps you make sound decisions, and reduces your risk of losing money. Having a good strategy can help you trade forex successfully, and make a decent amount of profit, which is the whole point of buying and selling foreign currency.
Now, there are a lot of people who claim to have great forex trading strategies, but most of these people never traded a day in their lives, and are just wasting your time. If you are really interested in trading strategies, you should get your tips from professionals that have been trading for years, and have made money doing so.
In an effort to save you some time searching for trading strategies from forex trading professionals, we have gone through a list of insider trading strategies gathered from professionals, and have decided to make a list of the 5 best forex trading strategies that you can use to make money trading foreign exchange.
#5 – Fibonacci retracement lines are based on the Fibonacci sequence, and they are considered to be predictive in nature, which helps forex traders predict future rates. The overlapping Fibonacci trade involves using Fibonacci retracements to look for a confluence of a Fibonacci level with signals like resistance and support, because two strong Fibonacci levels that are in an area of resistance and support, is likely going to result in some kind of usable reaction.
#4 – This strategy uses two Stochastics, one of which is slow, and the other fast. They are used in a combination, to pick an area where the price is overextended in a short term retracement, but is about to rebound into a continuation if the trend.
#3 – This strategy is based on observing the behavior of price, and the Bolly bands mark the limits that the price can reach. If the price touches the Bolly band when going from a higher price to a lower one, the price is expected to increase, and when it touches the Bolly band going from a lower price to a higher price, the price is expected to drop again.
#2 – This involves combining Fibonacci extensions and retracements with daily, weekly, monthly, or even yearly pivots, to find trade entries. The best way to use this involves using daily pivots with 38 and 50 percent Fibonacci retracement levels.
#1 – This strategy uses pure price action to help find entries levels, it is considered the most complete trading strategy, and it gives traders a chance to use polarity indicators that combine the 20EMA with the Bollinger mid-band.