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.
Breakouts are a great approach for Forex trading, why? Simplicity is the reason; the methods are structured and rule-based which is what traders need to achieve consistent results.
I must be honest upfront, pure breakout trading does come with psychological challenges due to fake breakouts, and thus a lower win %, some traders may be suited to trading breakout retests instead. All that being said, when implemented correctly breakout trading can make consistent profits.
Ranges occur in the Forex market about 70% of the time. Having a strategy to take advantage of these conditions could be a smart move if you are a trader who enjoys trading frequently and a higher win % suits your personality. In this post, you will learn a simple range trading strategy allowing you to take advantage of the most common market environment.
Are you interested in using fundamentals to trade Forex but have no idea where to even start?
This article will set you on the right track by explaining 3 different approaches to trading fundamentals in Forex: News trading, interest rate approach and geopolitical trading.
The RIGHT way. Trading Chart patterns might be the easiest way to start learning how to trade a strategy. It can help traders to remain objective because there are certain boxes a pattern needs to tick before it can be considered a High probability trade. There are many ways to trade the same thing in Forex but some ways are… better than others.
Breakout trading is one of the most utilized approaches in the Forex market. This is because trading breakouts is simple and far easier to implement when compared to other strategies, making it a great option for traders starting out and even veterans of the market.