Monday, January 23, 2017

THE COMPLETE GUIDE FOR

FOREX TRADING STRATEGIES

Technical Forex Strategies


Technical analysis is very important in day-to-day forex trading. The fundamentals might set the direction of a pair, but it's the technical analysis which makes it possible to trade, otherwise you might end up losing even if you are on the right side of a trade. The technical strategies section that we continuously update with new articles will help you identify entry and exit points as well as how to make the most of a trade.

Fibonacci Indicator - Forex Trading Strategies

The ‘Fibonacci indicator’ Forex trading strategy is one of the most well known and commonly used long term Forex trading strategies. This method relies on what is called a ‘Pullback’ and to fully understand how it works we must discuss the more fundamental concept ‘the trend’. When we look at each price change individually it is very hard to explain them and find a pattern as there are so many of them.

Horizontal Levels - Forex Trading Strategies

Horizontal Levels is one of the simplest ideas in Forex trading and yet a very useful Forex trading strategy. Horizontal levels are fundamental in most Forex trading strategies and aid us in analyzing charts but can also be used on their own as a strategy rather than a tool to use for other strategies.

Divergence - Forex Trading Strategies

Traders and analysts of the financial instruments, apart from the fundamentals, use a number of indicators to figure out what might happen next to the price of a certain instrument. These indicators offer a simple method of recognizing patterns and predicting which way the price will trend next. The use of these indicators is what makes Forex signals possible as they allow for a real-time analysis of the price action and our analysts here at FXML use them all the time.

Candlestick - Forex Trading Strategies

Candlestick charts are the most common chart types used by retail traders and investors. There are other types of charts such as line charts, bar charts etc., but they don't tell the story of past price action like candlesticks do. When trading is based on technical analysis, the decisions for future price action are made based on how the price has reacted in the past. I find candlesticks to be very useful and they are one of my favorite indicators. They work almost perfectly in volatile times, but even in less volatile times they work pretty well if used in combination with one or two other indicator.

Triangles and Wedges - Forex Trading Strategies

We have covered most of the important technical chart patterns in our strategy section during 2015. There are still some strategies left though. “Triangles” and “Wedges” are two of the 10 most important chart patterns and in this article we´ll explain how to trade them.

ADX (Average Directional Index) - Forex Trading Strategies

How many times have you entered into a trend only to find out that it has already run its course and you were too late? Many of the Forex trading strategies that we use help us predict which way the market is trending and whether to expect a bearish or bullish trend, but give little or no indication as to the strength of the trend.

Trading with Ichimoku - Forex Trading Strategies

The Ichimoku Strategy is an abbreviation of the Ichimoku Kinko Hyo, which was developed by a Japanese journalist named Goichi Hosoda in the 1960s after 30 years of working within this indicator. This technique has been popular in Japan for quite some time now and it has gained popularity in other parts of the world as well. Ichimoku Kinko Hyo means “instant look at the balance chart” if you literally from Japanese.

Head and Shoulders - Forex Trading Strategies

We already discussed ‘Candlestick Trading Strategy’ which allows us to understand the candlestick charts and what each candlestick indicates. But in order to really become a master of the charts we must learn about a few common patterns that can be formed on the charts and what information we can draw from them about the future.

Hedging - Forex Trading Strategies

Traders of the financial markets, small or big, private or institutional, investing or speculative, all try to find ways to limit the risk and increase the probabilities of winning. There are many Forex trading strategies out there and hedging is one of them. In fact, hedging is one of the best strategies to do just that, that's why many large institutions use it as a mandatory component of their tactics. There are even investment funds that are named after this strategy, because they 'hedge' most of the trades and that's why they are called 'hedge funds'.

Elliot Wave Theory: The Background - Forex Trading Strategies

Having nothing in particular, to fill his days, Elliot turned his attention to the stock market behavior and developed his theorem in later stages of life. Born an accountant, but retired at age 58 after catching a virus from a trip to South America. This is one of the oldest trading strategies, first published in 1938 as a book under the name ‘The Wave Principle’. Until that time, the general concept was that the market behaved in a chaotic manner and there were not many trading strategies if any existed.

Trading with the Elliot Wave Theory: Part 2 - Forex Trading Strategies

In the previous article we published an article where we explained how the Elliot Wave Theory was developed and how it worked. When used alone as a principle it’s useless unless implemented in everyday trading. So this week we will explain how to trade with the Elliot Wave Theory (EWT), after all that´s what we need it for.

The Importance Of Liquidity In The Forex Market - Forex Trading Strategies

Liquidity has been an important factor since ancient times and it continues to this day. A person, company or a country can be very wealthy but if they don´t have enough liquidity or liquid assets they can bankrupt easily. Very often we hear about liquidity or the lack of it, especially during the 2008 financial crisis.

How to read and trade the price action - Forex Trading Strategies

Trading can be as difficult or as easy as you make want it to be. Indicators and trading strategies can make trading much easier, and knowing how to read the price action is one of the most useful ways to trade. This type of analysis was first introduced by Charles Dow who laid the foundations for the technical analysis, but it has been developed and advanced remarkably since then. Understanding the price action gives you that extra edge you need to get over the profit line. 

Trading forex according to your available funds and time - Forex Trading Strategies

Many forex traders have limited funds or time which can be an obstacle.  But there are trading strategies suitable for these forex trader types, which help them overcome the battle.  

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