Proven Forex Strategies
- Author Bt Stew
- Published February 10, 2021
- Word count 723
There are thousands of proven Forex trading strategies available on the internet. Still, the question is, if it was any good, would someone give them away. The answer; probably not. So what can you learn from reading this article? Not many people know how to start designing their strategies, which is where this article will help you. After reading the following, you will be able to experiment with your system and maybe even stumble across a real winner.
First of all, you will need indicators in your currency trading strategies, readily available through the MT4 platform for free. You will have no problem finding signals hinting at the direction of a currency pair. There are too many of them to go through in one article. Still, all you need to know is that there is plenty of information on the internet explaining how to use each one; all you have to do is seek, and one will find answers. In this article, we will go through the indicator categories so you can compile what will work with what.
One of the most common Forex trading strategies is trading with the trend, which you can establish using indicators such as Moving averages, Bollinger bands, ADX, Parabolic SAR, Commodity Channel Index, and standard deviations. Do not panic if all that sounds complex because the truth is it is tricky. Still, all you need to know is when each one gives you a buy or sell signal, you don't need to know the inner workings and calculations.
Oscillators indicate the range of a currency, for example, a range between 0 and 100. If the indicator is at the top of the field or near the "100" mark, then it is an indication that the currency pair is overbought. Suppose the opposite is in effect and the currency is near the "0". In that case, it is an indication that the currency is oversold. There are many different Oscillator indicators such as Average true range, Bulls power, Bears power, Envelopes, force index, MACD, RSI, Relative Vigor Index, and many more custom designs from programmers.
Volumes indicate the buying and selling power of a currency. The money flow is displayed through an indicator that will show as a trend either up or down. An uptrend would suggest more money flow through the buying market, and a downtrend would indicate more money flow through the selling market. The indicators to look out for that will give volume to your trading strategy are Accumulation/Distribution, Money flow index, On balance volume.
Putting it all together
So this is where you start to see how indicators can make up your strategy. Imagine you have a chart with a couple of moving averages on the price and maybe a Bollinger band giving you an indication of an uptrend. You add an Oscillator to the chart that gives you a signal of overbought. So you are not going to buy off the result of the trend indicators because your Oscillator indicates it is overbought. You could wait until your moving averages cross over and take a sell trade or get in early when the price moves through your mid-Bollinger band. Either way, you have just developed your first strategy. You could even get more technical and add a volume indicator and see when buying power starts to decrease and take the sell even earlier.
Experimenting is the key to success, and it could take years to get it right. There are some excellent strategies out there for free, but you will often find they only work in a specific type of market. A perfect way to start developing your strategy is to take one of these methods and add another indicator. As stated at the beginning of the article, nobody in their right mind will give you a mega winning strategy for free. You can either pay a subscription to use the system or buy it outright in the form of an EA.
I discovered very early on that trading Forex requires a serious approach for it to be of long-term profitability. Bt Stew have been trading for over seven years independently and offer beginners training at The Premier Forex League and a development course for experienced traders. Come and see how you can develop or copy one of my winning strategies.
After years of online marketing I opened a legit local marketing agency. Around the same time I took an interest in the foreign exchange market and decided to add it as another source of income. After the learning curve I was able to become a very profitable trader. Trading is now my #1 source of income. The marketing agency is still viable and doing well, but nothing compared to the earnings from Forex. I hope to lessen the mistakes made by newbies as they begin a new journey. https://forexsignalroom.comArticle source: https://articlebiz.com
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