Before you get too excited, know that there is no such thing as “The Perfect Forex Trading Strategy.” So if you’re still reading, I’m assuming you already know that.
There IS, however, the Perfect Forex Trading Strategy for YOU!
Head and shoulders (H&S) refers to a popular technical analysis pattern used to trade market reversals.
A classic head and shoulders indicates the probable end of an uptrend proceeded by a downtrend. Inverse head and shoulders also occur in markets, and these suggest that a downtrend should come to an end followed by an uptrend.
All the time, people will think of Forex trading as an intimidating thing or skill. Still, when I look back, I can’t really pinpoint how I came to know what I know now about trading the Forex market.
I completely understand a beginner’s pain hearing all these terms like “Spread” or “Margin” or even “Pips.”
Have you ever felt overwhelmed by all the strategies you know? You’ve tried most of them, and each works well in different market environments, producing fantastic results for you. So many methods at your disposal, but you are unsure when to implement them.
If you are looking for a simple Forex trading strategy with high-profit potential, then you have come to the right place.
Flag patterns are straightforward to trade and offer a great risk to reward ratio, but what does this market phenomenon consist of?
Often in a trader’s journey, people may become bored and lazy to the point where they don’t focus on the finer details of their strategies. It’s even worse for the traders just starting, because many believe that profits will come immediately without going through the learning process and failing time and time again.
Today we will look into the rising wedge pattern which occurs in the markets when price contracts in a specific direction. On a chart, you will observe a trendline underneath price and channel line above.
Within the wedge, the market still has bullish momentum, but breakouts out of this pattern can occur in either direction.
A trading strategy is a set of predefined rules that a trader follows when opening, managing and closing a position. This means that specific criteria must be met before any trades are placed or modified.
Trading strategies dictate when you should be participating in the market vs. when you should stay out, which essentially means that the rules are making the trading decisions.
Profitable trading strategies are usually extremely simple. Fibonacci is one of the easiest forms of technical analysis to grasp which is why today I will show you a Fibonacci Forex strategy.
What is the basis of Fibonacci trading? These levels are calculated relative to the size of the previous move i.e. the value from one swing point to another.
Trendlines are a form of dynamic support and resistance which means trendline breaks signal a potential shift supply and demand, just as breakouts of horizontal levels do. Traders can take advantage of these occurrences and position themselves on the correct side of the market.
Before we rush, what is a trendline breakout? This occurs when price closes past a trendline that previously acted as support or resistance.