Forex Trading Strategies

Countless Forex trading strategies have been invented over the years, some relying on technical use of charts and numbers and others relying on a fundamental understanding of the market with reference to current events. Some have become very popular while others are only used by a minority of traders.These trading strategies range in different levels of complexity. We will now discuss some of our expert’s favorite strategies starting with a rather simple one and moving up the complexity scale as we go along.
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2.Support and Resistance Levels Forex Trading Strategy

Every forex trader, advanced or novice, should learn how to look for support and resistance levels on the charts. It doesn’t matter if you trade Forex, commodities, stocks or any other instruments, this strategy will serve you as a baseline for your trading activity and analysis. The best thing about support and resistance levels is that a good trader can spot them even on a “naked” chart since they are easy to identify.

3.Fibonacci Indicator Forex Trading Strategy

One of the most famous and popular forex trading strategies is Fibonacci, named after the famous Italian mathematician. Considered as a medium-long term trading strategy, we use it to follow repeating support and resistance levels. History shows that the market moves in waves and Fibonacci takes advantage of this fact. Fibonacci ratios can help us identify potential resistance and support levels on the financial charts. The most common ratios are 61.8%, 50% and 31.8%.

4. Multiple Time Frames Forex Trading Strategy

We at FX Market Leaders love to use this method to double-check the trading decisions that our analysts take. The way to use this trading strategy is to follow a certain currency pair over different time frames. By analyzing different time frames we can spot trends on bigger and smaller scales and make a better analysis of the overall trend. While there is no limit on how many time frames to follow, we recommend to look at not more than 3-4 time frames simultaneously. A good combination can be 15 minutes chart + 30 minutes chart + 5 hours chart.

5. Scalping – Short Term Forex Trading Strategy

Many novice forex traders find scalping to be a great technique. Scalping is a very low-risk strategy but nevertheless allows a strong trader to make enormous profits. This trading strategy requires a great amount of patience and awareness and although it is low risk it is still very hard for novice traders to profit from it. Emotions must be set aside as they lead to compulsive actions which do not work with scalping at all.

6. Horizontal Levels Forex Trading Strategy

Understanding horizontal levels is considered by many as one of the first things that a novice trader should learn. Horizontal levels help us analyze the charts and are mostly used in combination with other Forex trading strategies, but can also be used on their own as a standalone method for trading.

7. ADX (Average Directional Index) Forex Trading Strategy

This unique indicator works a bit differently from the rest of the FX indicators that traders usually use, because it indicates the strength of a market trend, and not its direction. We believe that it is a great tool for traders who are a bit more advanced and wish to get an extra help for their trading decisions from an additional indicator. The reason for its popularity is that we know that by placing a trading position at the same direction of a strong, solid trend, we increase our potential for earnings while at the same time we reduce the level of risk that we take.

8. Carry Trade Forex Trading Strategy

If you are an advanced trader who is looking for an alternative way to profit from your trade on the long run, then Carry Trade might be a good technique for you. In our article about carry trade we explain thoroughly how to use carry trade so you will be able to understand the concept behind this strategy.

9. Candlestick Forex Trading Strategy

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 and 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 indicators.

10. Head and Shoulders Forex Trading Strategy

Head and shoulders or as they appear on the Forex jargon “Shampoo” because of the shampoo with the same name, are one of many recognizable and tradable chart patterns. It consists on a high peak in the middle and two double peaks either side of that one. The higher peak is the head and the other two lower ones are the shoulders. The pattern itself looks like a head between two shoulders, hence the name.

11. Trend trading Forex Trading Strategy

FXML’s top analysts use trend trading as one of their leading trading strategies and always check which side of the trend they are on before making a trade or signal. The main idea behind ‘Trend Trading’ is picking a top or a bottom. Novice traders tend to think that trend trading is easy; just find the trend and trade alongside it. In practice, it’s not that easy, as with all other aspects of this game, many dilemmas pop up when trying to identify the trend.

12. Divergence Forex Trading Strategy

Divergence is a leading indicator used by our analysts at FXML and helps to significantly increase profits. The likelihood of entering in the right direction at the right time increases if used alongside other indicators such as Moving Averages (MA), RSI, Stochastichs, Support and Resistance levels etc.

13. Trading the News Forex Trading Strategy

Big announcements or news coming out of different countries can have a huge effect on the market, rendering all our analyses meaningless. In this article you will learn how to use the news in order to make profit.

14. Hedging Forex Trading Strategy

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.

15. The Strategy to Trading majors in 2015

Big investors, hedge and pension funds as well as good traders lay out plans and strategies in advance, usually before the quarter or a new year begins on both, fundamental and technical outlook. So we are suggesting a strategy to figure out 2015 in advance.

16. Trading moving averages

As traders, we have to take into consideration many things. We have to implement different factors and indicators in our analysis in order to succeed in this business, no matter if you trade short or long term. These might be fundamental indicators, technical indicators, or both. On the other hand, we shouldn´t overcrowd the charts with too many indicators that will contradict each other and cloud our judgment.

17. Trading the Market Sentiment

We all know that trading in the Forex market is not easy. Sometimes every technical indicator points to a certain direction but the market moves in the other direction. Other times the fundamental outlook of an economy is very bearish for the currency of that country, yet it keeps moving higher against other currencies.

18. Triangles and Wedges strategy

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. It´s true that they are different patterns, but they are very similar so we´ll teach both of them in one article.

19. Creating a trading plan- Part 1

We have heard many times that new Forex trader’s fail 80% of the time. That’s because many beginners start trading without a clear plan. A premeditated plan is crucial when you trade. It´s like going to war without an attack and a defense plan. Before you go into a battle you assess your capability, your strengths and your weaknesses. The same logic applies to Forex, you prepare a plan that helps you base your trading on your strongest features and avoid the weak ones.

20. Creating a trading plan- Part 2

A little while back, I wrote about how to build a trading plan. The trading plan is very important so we thought it would be better if we only published half of it, the first part. It would give you some time to practice the first two steps, your available funds and your available time. This week we are publishing the second part of the trading plan with the two remaining steps.

21. Elliot Wave Theory: The background

New strategies breathe life into the market, so we are presenting the ‘Elliot Wave Theory’, named after Ralph Elliot. 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’.

22. Trading with the Elliot Wave Theory: Part 2

A couple of weeks ago 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! When you use EWT you trade the probability which this system offers.

23. Trading with Ichimoku

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.

24. The importance of liquidity in the Forex market

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.

Samkelo Ndlovu

 

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Forex Trading Strategies

Plan How You Will Trade

You may have heard the adage, “if you fail to plan, you plan to fail.” This is particularly true in Forex speculation.

Successful traders start with a sound strategy and they stick to it at all times.

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  • Choose the currency pairs that are right for you.
    Some currency pairs are volatile and move a lot intra-day. Some currency pairs are steady and make slow moves over longer time periods. Based on your risk parameters, decide which currency pairs are best suited to your trading strategy.
  • Decide how long you plan to stay in a position.
    Based on your currency pair selection, plan how long you want to hold your positions: minutes, hours, or days. Remember that depending on your account type, having open positions at 5:00pm Eastern Time may incur rollover charges.
  • Set your targets for the position.
    Before you take a position you should establish your exit strategy. If the position is a winner, at what rate will you cash out? If the position is a loser, at what rate will you cut your losses? Then, place your stops and limits accordingly
Plan How You Will Trade

Looking for the best forex trading strategy? Your search is over. Here’s the best I’ve found in over 10 years of trading. TOTALLY FREE!

FREE FOREX TRADING STRATEGIES – Producing By Samkelo Ndlovu

When it comes to selecting strategies to trade, you have the choice between buying one off-the-shelf or trawling the Internet for freebies. The trouble with free forex trading strategies is that they are usually worth about as much as you pay for them. They haven’t been tested, and there is little evidence of their reliability.The strategies covered here on the other hand, are ones that either I or successful traders I know have used in a consistently profitable fashion…

#1: The Bladerunner Trade

The Bladerunner is an exceptionally good EMA crossover strategy, suitable across all timeframes and currency pairs. It is a trending strategy that tries to pick breakouts from a continuation and trade the retests.

#2: Daily Fibonacci Pivot Trade

Fibonacci Pivot Trades combine Fibonacci retracements and extensions with daily, weekly, monthly and even yearly pivots. The emphasis in the discussion here is on using these combinations with daily pivots only, but the idea can easily be extended to longer timeframes incorporating any combination of pivots.

#3: Bolly Band Bounce Trade

The Bolly Band Bounce Trade is perfect in a ranging market. Many traders use it in combination with confirming signals, to great effect. If Bollinger Bands appeal to you, this one is well worth a look.

#4: Forex Dual Stochastic Trade

The Dual Stochastic Trade users two stochastics – one slow and one fast – in combination to pick areas where price is trending but overextended in a short term retracement, and about to snap back into a continuation of the trend.

#5: Forex Overlapping Fibonacci Trade

Overlapping Fibonacci trades are the favourites of some traders I have known. If used on their own, their reliability can be a little lower than some of the other strategies, but if you use them in conjunction with appropriate confirming signals, they can be extremely accurate.

#6: London Hammer Trade

The extra volatility you get when London opens presents some unique opportunities. The London Hammer Trade is my take on an attempt to capitalise on these opportunities. Especially effective during the London session, it can be used at any time when price is likely to be taking off strongly in one direction, and possibly reversing from an area of support/resistance just as strongly.

#7: The Bladerunner Reversal

As mentioned above, the Bladerunner is a trend following strategy. The Bladerunner reversal just as effectively picks entries from situations where the trend reverses and price begins to trade on the other side of the EMA’s.

#8: The Pop ‘n’ Stop Trade

If you’ve ever tried to chase price when it bounds away to the upside, only to suffer the inevitable loss when it just as quickly reverses, you will want the secret of the pop and stop trade in your trader’s arsenal. There is a simple trick to determining whether or not price will continue in the direction of the breakout, and you must know it in order to profit from these situations.

#9: The Drop ‘n’ Stop Trade

The flip side of the pop and stop, this strategy trades savage breakouts to the downside.

#10: Trading The Forex Fractal

The forex fractal is not just a strategy but a concept of market fundamentals that you really need to know in order to understand what price is doing, why it is doing it, and who is making it move. This is the kind of inside info that took me years and many thousands of dollars to learn. It’s yours here for free, so make use of it There are also several sites on the net offering free strategies. The problem with most of these sites is, as mentioned above, they just give a brief description of each strategy, with little real proof that they work. Consequently, there is a need for greater research on your part before using any of those strategies in your actual trading. Once you have selected a strategy from one of these sources you will of course need to thoroughly back test and forward test it. The various processes for this are covered in Forex Strategy Testing There are also several commercial systems to consider. Since these are more comprehensive than the simple strategies presented above, and thereby fall into the definition of Forex Trading System, they are dealt with separately in the following section.

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Looking for the best forex trading strategy? Your search is over. Here’s the best I’ve found in over 10 years of trading. TOTALLY FREE!

Smart Affiliate Marketing Strategies Producing By Samkelo Ndlovu

Affiliate marketing is the process of earning a commission by promoting other people’s (or company’s) products.

You find a product you like, promote it to others, and earn a piece of the profit for each sale that you make.

  • You’re happy because you earned a commission…
  • The company is happy because they have a new sale from a customer that they might not have normally been able to reach…
  • And the customer is happy because they learned about a product from you that will hopefully fulfill a need or desire.

The beauty of affiliate marketing is that you don’t have to invest the time and effort to create a product to sell. You can begin selling something as an affiliate as soon as you have a platform to sell it on.

Affiliate marketing is something I’ve been doing ever since I started my first business online on my LEED Exam website – promoting a third party company’s practice exam software along with my own published eBooks and audio guides.

I also do affiliate marketing here on the Smart Passive Income blog, sharing many of the tools and services that I use to run my online businesses, and if you or anyone else purchases through my affiliate links I earn a commission. If you’ve purchased from my links before, thank you so much! I greatly appreciate your support!

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THE TWO MOST IMPORTANT RULES I HAVE FOR AFFILIATE MARKETING

Before I share the strategies that I’ve used to generate over $20,000 in affiliate commissions per month, there are extremely important rules I use when promoting products that are not my own. You don’t have to use these rules in order to become an affiliate or be successful at it, but it’s what has helped me grow my affiliate income tremendously over the last couple of years:

  1. I only recommend products as an affiliate that I’m extremely very familiar with – preferably products that I’ve used before and have helped me achieve something. If I’m not confident in the product and I don’t feel it will positively help people, I will not promote it.
  2. I never directly tell anyone to buy a product. I always recommendproducts based on my experience and in the context of what I’ve done or what I’m doing.

Honest affiliate marketing has always worked best for me, so I encourage you to do the same.

————————-Samkelo Ndlovu————————

Smart Affiliate Marketing Strategies Producing By Samkelo Ndlovu