Forex trading strategies
The only goal that unites all traders of the Forex currency market is to extract the maximum profit. You can have a stable profit from transactions in the foreign exchange market, but for this you need to use Forex trading strategies . There are several ways to get strategies.
The first is to independently develop a successful model of behavior in the foreign exchange market. This method is not suitable for beginners, they can only be used by experienced players who in detail have studied all the subtleties and nuances of working in the foreign exchange market.
The second option is to take advantage of the already existing strategy, choosing the best option, corresponding to your trading style and deposit size. The only sure sign of a successful trading strategy is the positive balance of the deposit, and therefore each trader has his own successful strategy. Conventionally, Forex strategies can be divided into three categories, depending on the basis on which their principle of operation is based. Allocate fundamental forex strategies, strategies based on indicators and strategies that do not use indicators in their work.
At the heart of fundamental strategies lies the fundamental analysis of the market and global factors that can influence the exchange rate. Such strategies are especially effective when concluding long-term transactions in the foreign exchange market. The most popular strategies of this type include:
- A trading strategy based on key news;
- Strategy on Wednesdays for the currency pair AUD / JPY;
- The carry trade strategy;
- A strategy based on gaps.
The strategies on the indicators are based on the use of a variety of graphical indicators of the currency market. Modern trading platforms greatly simplified the use of this type of strategy. These strategies are based on technical analysis and are perfect for fans of short-term deals. The most popular Forex trading strategies of this type are:
- Strategies with the intersection of two moving averages;
- Strategies with MACD divergence;
- Strategies with an oscillator;
- Strategies based on a combination of stochastics and SS.