Five Forex Trading Strategies That Work

In Forex trading, the first thing you need to understand is that there is no perfect system in place which is immune to failure. Since the trading market is fluid and continuously changes, there is no universal strategy that accommodates markets. Here are some of the best strategies that you can use in different markets. It falls upon you to evaluate the current state of the market and determine the most appropriate one for a profitable return.

  1. The Elliott Wave Theory with Fibonacci Retracement Levels

This strategy makes use of a technical indicator that plots an Elliott Wave count on your chart. The trading system is systematic. The Fibonacci levels rely on scientific data to come up with the resistance and support levels. This produces easy to follow trade signals since the MT4 Elliott Wave indicator will plot a 5-wave sequence with an expected 3-wave pullback. We simply buy or sell catching a minimal 50% Fibonacci Level retracement within the trend.

  1. Renko Charts Trading Strategy

The Renko Charts, used within this strategy, are quite unorthodox in that they do not factor in the element of time. This strategy relies on trend trading since the Renko Charts make it rather easy to visually identify price trends. The time aspect is added to the Renko Charts using the Ichimoku indicator which further bolsters that system.

  1. Nicolas Darvas Trading System

This is a short-term trading strategy tailor-made for the fifteen-minute chart. None the less, it finds adequate uses in longer frames of time. The findings of Nicolas Darvas were that; once a trend becomes defined, either bullish or bearish, it will maintain that movement in “boxes”. In this case, the box is defined by the fair and consistent oscillation of a price between a high and a low point. This system is reliant on the price action and a technical indicator, which is the twenty-day moving average. This is an average value used for market trend determination and ensuring that trades remain open in the predominant trend direction only. This is a simple, straightforward system. You simply need to buy on the upside of the Darvas box and take a reverse action for the selling.

  1. The 5 min Forex Scalping Strategy with Parabolic SAR and MACD

This is a scalping strategy best suited for part-timers. The Parabolic SAR indicator is used to determine short-term trends. The strategy here is to trade in the particular direction of a five-minute trend by jumping in on the first pullback. A confirmation signal is given by the MACD indicator.

  1. The 4-Hour RSI Bollinger Bands Strategy

This is a strategy that generates signals for selling and buying for a 4-hour time frame. It is non-directional in nature, with the Bollinger bands indicator used in determining the narrowing times of the price range, and the RSI indicator deterring the direction in which the market will break from the range. The merit of the strategy is that it tries to foreshadow the direction in which the trade will breakout before it actually does. This enables you to increase your profit margins, Checkout here More Forex Trading Strategies that Work

Other profitable short and long-term strategies can be gotten here.

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