Top 15 Advanced Forex Trading Strategies
Having a strategy that fits your personality is the first consideration when you start forex trading. There are two kinds of strategies used in FX trading – hedging and speculation. Hedging is when you take a position that offsets the risks brought by price fluctuations in the future. As for the Speculation, it is being used in predicting a move thru analyzing the movement of the market.
15 FX Trading Strategies
The strategies mentioned here suit one trader to another. Some strategies need a level of investment that some retail traders might have a hard time to achieve.
Price Action Trading Strategy
Being a vast concept, price action can be a bit confusing for new traders. But price action actually has no specific rules that need to be followed. Its concept is as simple as selling out of the resistance and buying out of the support.
Scalping Trading Strategy
This strategy lets you earn some quick profit. Its concept allows traders to make money by exerting as little effort as possible.
Read more: Apps Like Monkey
Day Trading Strategy
This strategy speaks for its name. The trader will have to close all the trading activities that he had at the end of the day, even with profits or losses.
Swing Trading Strategy
This strategy is a long-term system requiring traders to be calm in holding their trades for a couple of days. Swing trading is best for traders who cannot monitor the movement of the chart throughout the day.
Correlation Trading Strategy
This strategy involves the movement that happens through correlation. In this case, the movement can be due to economic news.
Candlestick Trading Strategy
This strategy involves currency charts, particularly the candlestick. This type of chart can supply a very accurate movement of prices based on technical analysis.
Trend Trading Strategy
This strategy is all about knowing the currency pairs that can be bullish or bearish.
Fibonacci Trading Strategy
This trading strategy is considered to be one of the most profitable methods used in trading. Fibonacci is used for the long or medium-term method and needs to have higher time frames.
This strategy allows traders to gain the maximum benefit out of the movement in the market.
ZigZag Trading Strategy
This trading strategy involves swings low and swing highs. It helps in increasing the accuracy of these market points.
Wave Trading Strategy
Just like the approach of trend trading strategy, it is also easy to know. The wave trading strategy involves five consecutive waves.
Ichimoku Cloud Trading Strategy
This strategy is known to be a collection of trading indicators that identifies the support and resistance of a possible trend direction.
RSI Based Trading Strategy
This RSI is a trading indicator that provides trading signals into the chart. It has a decisive characteristic in eliminating early signs of trades.
Pivot Point Trading Strategy
This trading strategy can be used in different currency pairs. It is an influential strategy used in currency pairs.
Moving Average Trading Strategy
This Forex trading strategy works well in different time frames, be it from one minute or one month.