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Forex strategies trade forexForex Trading Strategies. The fundamental forex strategies for trading based on fundamental events and how they affect the forex market. The technical forex strategies for trading based on technical (mathematical and statistical) analysis of the forex rate charts. The popular forex strategies section contain forex strategies based both on fundamental and technical trading. You’ll find here the most crucial strategies for your forex career and therefore they are in a different section. In the forex strategies articles section you’ll find information on implementing the best forex strategies in your forex trading process: stuff like risk management, matching guides between a personality type and the relevant trading strategies, etc. ADX (Average Directional Index) – Forex Trading Strategies. How many times have you entered into a trend only to find out that it has already run its course and you were too late? Many of the Forex trading strategies that we use help us predict which way the market is trending and whether to expect a bearish or bullish trend, but give little or no indication as to the strength of the trend. Sometimes these . Full Article. Arbitrage – Forex Trading Strategies.

Arbitrage has been in practice since ancient times. Arbitrage is a speculative strategy, where someone attempts to profit from price differences of the same instrument either in the same market or in different markets. It involves buying and selling an asset at two different prices in order to profit from the difference. Finding the right condit . Full Article. Candlestick – Forex Trading Strategies. Candlestick charts are the most common chart types used by retail traders and investors. There are many other types of charts such as line charts, bar charts etc., but they don't tell the story of past price action like candlestick indicator patterns do. When active trading is based solely upon technical analysis, projecting future price action is . Full Article. Carry Trade Strategy – Forex Trading Strategy.

The carry trade forex strategy operates very differently from other forex methodologies. In contrast to the conventional concepts of buying low and selling high or selling high and buying low, carry Trade forex strategies appear abstract. They typically rely upon a fluctuating market and are therefore useless in a stable market lacking a prevai . Full Article. Creating a Trading Plan – 1 – Forex Trading Strategies. It is common knowledge that new Forex trader's fail 80% of the time. This is because many beginners start trading without a clear plan. A premeditated plan is crucial when you trade. Trading without a plan is 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 weak . Full Article. Creating a Trading Plan – 2 – Forex Trading Strategies.

In the past, we have published part 1 and part 2 of trader psychology. The first article was about identifying what type of trader you may be. We wrote that you might want to take a personality test to see where you stand in the continuum from impulsive to conservative. In the second article, we presented the readers with some forex trading strateg . Full Article. Divergence – Forex Trading Strategies. Apart from fundamentals, traders and analysts of financial instruments use a number of indicators to figure out what might happen to the price of a certain instrument. These indicators offer a simple method of recognizing patterns and predicting which way the price will trend. In essence, these indicators are what makes Forex signals possible. T . Full Article. Drifting from the EU: Brexit, Grexit, and How it All Affects FX – Forex Trading Strategies. Grexit Last year, the Greek Prime Minister Alexis Tsipras brought his people to a referendum to decide if Greece would remain in the European Union (EU). The EU has given Greece billions of Euros in soft debt to pay off the administration after Greece was hit hard by the financial crisis.

In 2012, Greece received a financial trim, where half of i . Full Article. Elliott Wave Theory: The Background – Forex Trading Strategies. New strategies breathe life into the market, so we are presenting the ‘Elliott Wave Theory’, named after Ralph Elliott. Having nothing in particular to fill his days, Elliott turned his attention to stock market behavior and developed his theorem in his later stages of life. Born an accountant, he retired at age 58 after catching a virus from a tri . Full Article. Fair Value – An Efficient Way for Trading Currencies – Forex Trading Strategies. Fair value trading is a strategy used in different financial markets. In the stock market, for instance, many traders buy or sell company shares based on the strategy of fair value. The fair value strategy is also very common in the futures market. But, how is it defined? According to the western accounting standards of IFRS (International Finan .

Full Article. Fibonacci Indicator – Forex Trading Strategies. The Fibonacci trading strategy is one of the most well known and commonly used long-term technical strategies on the forex. It attempts to place price action in the proper context by using the Fibonacci sequence, a close representation of the historical “Golden Ratio.” Fibonacci numbers are not only frequently used in the financial markets but are . Full Article. Forex Trading Strategy 2016 – Another Great Forex Year – Forex Trading Strategies. At the beginning of 2016, the FED had just begun a tightening cycle after increasing the interest rates in 2015. The FOMC statement and Yellen's speech implied several rate hikes for 2016, although the global economic conditions were not ideal, while the US economy was going through a harsh winter period. In Europe on the other hand, the ECB had . Full Article. Head and Shoulders – Forex Trading Strategies. We have already discussed ‘Candlestick Trading Strategy’ which allows us to understand the candlestick charts and what each candlestick indicates. However, to really become a master of the charts, we must learn about a few common chart patterns and what information we can draw from them about the future. The ‘head and shoulders’ pattern is one o . Full Article.

Hedging – Forex Trading Strategies. 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 approaches to trading the Forex out there and a viable hedging strategy is among the most powerful. In fact, hedging is one of the best ways to optimi . Full Article. Horizontal Levels – Forex Trading Strategies. Horizontal Levels is one of the simplest yet incredibly useful ideas in Forex trading. Horizontal levels are fundamental in most Forex trading strategies and aid us in analyzing charts. However, they can also be used on their own as a strategy rather than just a tool for other strategies. By watching the most obvious price changes and drawing their . Full Article. How to Protect Your Account (and Avoid Gambling Forex) – Forex Trading Strategies. We all know that the first and most basic rule to make it in the long run in the forex world is to protect your account. Most forex traders have lost one or more accounts after first starting the job. Rendering your account inoperable with low funds is a big scare, particularly for fresh traders.

But, that?s the risk we are willing to take in . Full Article. How to Read and Trade Forex Price Action – Forex Trading Strategies. Forex trading can be as difficult or as easy as you want it to be. Indicators and strategies can make trading much easier. Being able to read and understand forex price action is one of the most useful ways to trade currencies. Price action analysis was first introduced by Charles Dow, who laid the foundations for modern technical analysis. Si . Full Article. How to Trade Forex in a New Environment – Forex Trading Strategies. One of the first rules you learn when you start trading forex is that you should minimize your losses as much as possible to protect your capital. According to many forex textbooks, in order to do this, you must set tighter stop losses so when a trade goes bad your loss is minimal.

This is a good strategy for many occasions, but the forex market is . Full Article. How To Turn Volatility In Your Favor – Forex Trading Strategies. After about a decade of being an active participant in the financial markets, I can say that the volatility is pretty high. This one reason why only select individuals decide to enter the business of active trading, let alone attempt a career in it. Forex volatility, along with that of futures and equities, can make sustaining a living in the ma . Full Article. Keeping a Trading Journal – Forex Trading Strategies. Why do you need a trading journal? A trading journal enables you to look back at your trading history and see what you did wrong and what you did right, highlighting the trading mistakes. By keeping a journal, you can see if you have a tendency to enter or exit trades too early or too late, if you overtrade, if your position sizes are too big etc. . Full Article. Long – Short Hedging Strategy – Forex Trading Strategies. There are two ways you can trade in forex and all other financial markets, you can either buy or sell. We usually refer to this as ‘long or short’.

Long means to buy and short means to sell. If you follow our live market updates and market analysis then you must have encountered these two words very often. Often, instead of saying ‘we?re buying thi . Full Article. Multiple Time Frames – Forex Trading Strategies. The multiple time frames trading strategy is a Forex trading strategy that works by following a single currency pair over different time frames. By following the price chart we can see the highs and lows and establish the overall and temporary trend. However, by looking at the different time frames we can see changes and patterns that we were not a . Full Article. Planning Your Trading Strategy For April – Forex Trading Strategies. Last month, we published an article where we looked at the seasonal factors and patterns that impacted several currencies in March. We reviewed all previous petrol prices from March months in previous years, and the comparison to March 2016 was similar.

We also took a look at USDJPY and discussed the decline of the Japanese Yen in March 2016 again . Full Article. Reading the Interest Rates – Forex Trading Strategies. What are interest rates? How often have you heard the term interest rates? Thousands of times I bet, depending on how long you have been in this business. Our team has mentioned it many times in our daily updates and weekly analysis and have several articles about the central banks, who affect these rates. We have a forex strategy as well about in . Full Article. Risk (Money) Management Part 1 – Common Sense Tactics – Forex Trading Strategies. StrWhen you decide to trade in the financial markets, the one thing you should never forget is that there is always the risk of losing some or all of your funds. But fortunately for traders, one of the few aspects of trading which we can control is the risks. We can?t move the market, we don?t have insight on the intentions of the central bank, we . Full Article. Risk (Money) Management – Part 2 Developed Techniques – Forex Trading Strategies.

Previously, we published the first part of the risk management series. There we explained some of the common sense risk management techniques, such as trade exposure, riskreward ratio, keeping up-to-date with the market news, managing leverage and the trading journal. In this part, we will explain the techniques that have been developed by tr . Full Article. Scalping – Forex Trading Strategies. A large number of traders new to the markets find the idea of implementing a scalping trading strategy to be appealing. Currency, equity, and futures markets are all ripe targets for aspiring scalpers. As the world’s largest market, the forex is a popular venue for short-term and long-term traders alike. Due to its compressed timeframes, a forex . Full Article.

Support and Resistance Levels – Forex Trading Strategies. A good way to understand support and resistance trading is to picture a man trying to get past a solid fence that is blocking his way. Although he will keep searching for a passage along the outside of the fence, there is not one readily available. In the world of active trading, the fence is akin to a technical indicator known as support and resi . Full Article. The Importance Of Liquidity In The Forex Market – Forex Trading Strategies. 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, during financial crises (like the financial crisis of 2008). Some reputab . Full Article.

The Right Strategy in an Irrational Market – Forex Trading Strategies. Trading forex is often a very complicated job. There are times that trading is straightforward - it’s magical when the fundamental analysis, technical analysis, indicators, and market sentiment just seem to fall in step. Altogether, they can point up and you buy fast, or they point down and you sell. We have seen many such occasions, such as: the E . Full Article. Trader Personality Part 1: Discovering your Trading Personality – Forex Trading Strategies. When you enter the business of forex trading, you should identify the aspects that characterize you as a trader. Many new traders try to mimic the Wall Street stereotypes they have seen in the movies, but that?s the biggest mistake that can be made. New forex traders overtrade and are overleveraged because they want to reach their first million as . Full Article. Trader Personality – Part 2 – Forex Trading Strategies. In the first part of this series, we explained the two extremes of trader personality. In part two we will discuss the trading strategies that fit each type of trader personality. When people start trading forex, they learn how the market works and what makes it oscillate.

After trading for some time, traders develop their trading skills and become . Full Article. Trader Psychology – Applying Your Strategy – Forex Trading Strategies. In the past, we have published part 1 and part 2 of trader psychology. The first article was about identifying what type of trader you may be. We wrote that you might want to take a personality test to see where you stand in the continuum from impulsive to conservative. In the other article, we presented the readers with some forex trading strategi . Full Article. Trading Forex According to Available Funds and Time – Forex Trading Strategies. If you are reading this article, it?s very likely that you are a forex trader - or at least want to be one. Traders share a common love of trading currencies and like the benefits that came with the job. Yet, sometimes we get carried away and incorrectly trade forex; we refuse to acknowledge some important aspects of forex trading that eventually t . Full Article. How to Trade Profitably in Volatile Markets – Forex Trading Strategies. The volatility has increased dramatically over these last few weeks. Though this up-and-down nature has been common over the last 18 months, it has now increased. We have seen huge moves of many hundred pips; USDJPY declined by 1,000 pips in just eight trading days while GBPJPY lost 1,500 pips during the same time period. It is dangerous tradi . Full Article.

Trading Moving Averages – Forex Trading Strategies. As traders, we have many things to take into consideration. We have to implement many different factors and indicators in our analysis in order to succeed in this business, regardless of if you trade short or long term. These can include fundamental indicators, technical indicators, or both. On the other hand, we shouldn?t overcrowd the charts w . Full Article. Trading the Central Banks – The Actions – Forex Trading Strategies. The Central Bank (CB) of any country is the most important market participant for that country?s currency. The Central Bank officials, with their presidentchairman at the top, hold the monopoly for the monetary policy of each country or economic zone. A perfect example of this being the Eurozone. They are the decisive factor for all long-term curr . Full Article. Trading the Central Banks – The Rhetoric – Forex Trading Strategies. A few weeks ago, we wrote an article with strategies on how to trade the Central Bank’s actions. As we said there, the Central Banks have all the tools to devalue or appreciate their respective currency and they use them whenever they think the economy needs a leg up. We explained how to trade the ‘knee-jerk reaction’ (an interest rate cut or hike . Full Article.

Trading The Majors in 2015 – Forex Trading Strategies. At the beginning of 2015, we reviewed the events and risks which were expected to happen during the year, as it is usually the case with forex tradersanalysis. We took a technical look at GBPUSD after the fallout following the Scottish independence referendum and concluded that this pair would stop falling (and probably move up on a rate hike) fr . Full Article. Trading the Market Sentiment – Forex Trading Strategy. Lesson 1 - Forex Trading Strategy Guide - Introduction Searching for an efficient way to invest your money rather than letting it rest and lose value? Looking for a way to really leverage your money? Looking for higher returns on your investments? Starting a part or full-time career in finance? Looking for an extremely d . Full Article. Trading the News – Forex Trading Strategy.

We have discussed many Forex trading strategies that allow us to analyze the price action from many different angles. These trading strategies give us the technicals, however, there's one factor that always has the potential to make all of the technicals irrelevant and sway the market in any way that it likes. Big news events from different countri . Full Article. Trading with Ichimoku – Forex Trading Strategies. Looking at cloud-based indicators such as Ichimoku. What Is Ichimoku Trading? The Ichimoku trading strategy is an abbreviation of “Ichimoku Kinko Hyo,” developed by Japanese journalist Goichi Hosoda in the 1960s. This technique has been popular in Japan for quite some time, gaining popularity in other parts of the world as well. Ichimoku . Full Article. Trading with the Elliot Wave Theory: Part 2 – Forex Trading Strategies. Previously, we published an article where we explained the development and workings of the Elliot Wave Theory.

This principle is useless unless implemented in everyday trading. In this article, we will explain how to successfully trade with the Elliot Wave Theory (EWT).To recap, when you use EWT you trade the probability which this system offer . Full Article. Trend Trading – Forex Trading Strategies. Trading with the trend is one of the safest ways of engaging the capital markets and a great strategy for maximizing profits. FX Leaders’ top analysts use trend trading strategies as one of their primary approaches to the markets. In addition, before making a trade or issuing a signal, they always confirm which side of the trend they are on. . Full Article. Triangles and Wedges – Forex Trading Strategies. We have covered most of the important technical chart patterns in our strategy section. 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 o . Full Article. Understanding Forex and Letting the Market Guide You – Forex Trading Strategies. The forex market is never the same, what happens today does not mean that the same thing will happen tomorrow.

The market might increase from positive economic data today but next week it could crash after those same numbers are published. How many times have we seen this over the years? The answer is way too often. We know trading forex is a to . Full Article. By far, one of the most challenging tasks a forex trader faces is organization. The markets are fast-moving dynamic environments. If you are not prepared to attack them in a structured and disciplined manner, your chances of success drop dramatically. A rules-based approach governed by proven forex strategies is the best way to achieve your trade-related goals. But, which forex strategies or systems are best? This question can be a challenge to answer.

When choosing a forex trading strategy, it is important to identify several elements unique to your personal situation. Available risk capital, time, and level of experience are keys to determining what types of strategies are most suitable for you. If you have limited capital and time to trade, then attempting to be a high-leverage technical scalping strategy is probably not the best idea. An approach that limits risk, as well as active trading hours, may be best. Let’s say you are well-versed in computer programming and have extensive capital resources. Developing and implementing an advanced automated approach may be a great way to engage the forex market. The beauty of selecting a strategy is that the sky is truly the limit — there are nearly infinite options and each trader has an abundance of alternatives. A good place to begin your journey into the market is with our articles breaking down the various forex trading strategies. Topics covered include creating a trading plan, money management, risk management, and basic trader psychology. In order to move forward, one must first master the basics. These educational materials can help you do just that while building a rock-solid knowledge base.

After deciding which of the many forex trading strategies to implement, it is time to talk about execution. A plan cannot be effective unless it is adhered to consistently. Getting back on the horse after a crushing loss can be difficult — it takes dedication, confidence, and determination. Given a positive outlook, completing this task can become second nature. Sticking to the tenets of your plan through thick and thin may be the most important aspect of successful trading. No matter how many forex trading strategies are incorporated into your plan, their consistent application is the key to succeeding in the marketplace. In the event that maintaining focus and consistency in the market is becoming a problem, check out our articles on trader psychology and strategy application. In addition, there are resources breaking down forex strategies designed for the contemporary marketplace. Through a little work, gaining a winning mindset for applying your strategy is easily achieved. For many, achieving longevity in the forex is an elusive pursuit. Give yourself the best chance at success through preparation. Be sure to check out our educational series on forex trading strategies. After reviewing the materials, you will be ready to enter the market competently and pursue your trade-related goals with conviction.

Strategies for part-time forex traders. Very few people are available to trade forex full time. Traders who have to make their trades at work, lunch or night find that with such a fluid market, trading sporadically throughout a small portion of the day creates missed opportunities to buy or sell. These missed opportunities can spell disaster for the part-timer trader. The risk of missed opportunities notwithstanding, there are strategies that can work based on a part-time schedule. For example, those who trade at night might be limited to the types of currencies they trade based on volumes during the 24-hour cycle. These night traders should employ a strategy of trading specific currency pairs that are most active overnight. An example would be trading the Australian dollar (AUD) Japanese yen (JPY) pair or the New Zealand dollar (NZD)JPY or AUD pair. It is important to analyze the correlation between currencies when choosing a pair, as having time during the day to study the market and implement trades can lead to a successful strategy (For further reading on forex trading, see "How To Place Orders With A Forex Broker.") The main problem as a part-time trader is – you guessed it – time constraints. Here are some strategies for trading part time when you have an inconsistent schedule. Know Your Forex Markets. Assuming you work nine to five in the U. S., you could trade before or after work. The best trading strategy in those time blocks is to pick the most active currency pairs (those with the most price action).

Knowing what times the major currency markets are open will aid in choosing major pairs. The markets in Japan and Europe (open 2:00 a. m. – 11:00 a. m.) are in full swing so part-time traders can choose major currency pairs. These include the EURJPY pair or the EUR CHF pair for major currencies or pairs that involve the Hong Kong dollar (HKD) or Singapore dollar (SGD). The AUDJPY pair might also work well for part-time traders available during the 5 p. m. to midnight timeframe. While it is crucial to understand the best currency pairs that fit your schedule, before placing any bets the trader needs to conduct further analysis on these pairs and the fundamentals of each currency. Stop-Loss Orders in Forex Trading. The best strategy for part-time traders may be to let your computer be your "trading partner." The ability to employ a trading program where you can let the information technology work for you could be beneficial, as the forex market is so fluid and difficult to monitor. Another common strategy is to implement stop-loss orders, which means that if the market takes a sudden move against your position, your money is protected. Price Action in Forex. There is also a strategy for part-time traders who pop in and out of work (10 minutes at a time). These brief but frequent trading periods may lend themselves to implementing a price action trading strategy. Price action trading means analyzing the technicals or charts of the currency pair to inform trades.

Traders can analyze up bars (a bar that has a higher high or higher low than the previous bar) and look at down bars (a bar with a lower high or lower low than the previous). Up bars signal an uptrend while down bars signal a down trend, while other price action indicators may be inside or outside bars. The key to success with this strategy is trading off of a chart timeframe that best meets your schedule. (For further reading on trading strategies, see "Stop Hunting With The Big Forex Players.") Other Forex Trading Strategies. These strategies may also serve you well as a part-time forex trader: Take fewer positions and hold for days. It is critical that you understand the drivers of your currency pairs and have taken the time to really understand your market. Therefore, after studying the market and narrowing down particular chosen currency pairs, selecting a few positions and holding them for a longer period of time is a prudent strategy for part-timers. Another wise strategy is to put in stop-loss orders with all your trades to minimize any losses if the market moves against you. Look at long-term trends. There is value in looking at longer-term trends (dailyweekly) instead of looking at hourly or even four-hour charts. This will allow you to trade while looking at your computer only once a day. Set up trading orders.

Setting limit, stop-loss or other entryexit orders can ensure you do not miss opportunities to enter or exit positions. Most trading platforms allow for these orders with no additional fees. Use technology! Set up automated alerts to your mobile phone or email to keep you informed of currency price movements while you are not actively trading. The forex market is desirable for part-time traders because it runs for 24 hours and is constantly in flux, providing ample opportunities to make profits at any point in the day. However, the forex market is very volatile. This makes it risky for all traders, particularly the part-time trader, if the proper strategy is not implemented. Strategies such as trading specific currency pairs that are at play during the times of day you can trade, looking at longer timeframes, implementing price action methods and employing technology will contribute to the success of part-time forex traders. Risk tolerance, leverage and time horizon (from hourly to weekly) must also be taken into account for any trader's broader strategy. In sum, these elements are an important part of any trading strategy, whether the focus is on short - or long-term gains. (It's also important to keep track of your forex trading decisions, which are outlined in "4 Reasons Why You Need A Forex Trading Journal.") Forex Trading Strategy: The Ultimate Guide (2018 Update) Do you want to master Forex trading? Well it all starts with having the right strategy!

Trading Forex using price action is simple, stress free, and highly effective. In this guide I will share my advanced Forex trading strategy with you. You will learn to use powerful price action techniques in a stress free and simple Forex trading strategy. Don’t have time to read this article right now? I will send you a ebook version that you can read offline whenever you want. Just let me know what email to send it to. Almost there! Create an account by completing the form below. Forex Price Action Strategy. The Story of Price. Price Action Setups. Chapter 1: My Price Action Trading Strategy. My Forex trading strategy is based completely on price action, no indicators, no confusing techniques, just pure price action! What is Price Action Trading? All price movement in Forex comes from bulls (buyers) and bears (sellers).

When GBPUSD moves up it’s because there are more bulls than bears and vice versa. The Forex market (and any market for that matter) is in a constant state of struggle between bulls and bears. Price action trading is about analysing who currently controls price, bulls or bears and if they are likely to stay in control. If your analysis shows that bulls are in control and that they are likely to stay in control, then you can buy (long). If it shows that bears are in control and that they are likely to stay in control, then you can sell (short). How do you analyse who’s in control of price? By using two simple price action techniques. Support and Resistance Areas. These are buy and sell areas you can easily identify and place on your chart. Once price hits these areas you know it is likely to stall or reverse completely. This allows you to buy or sell at the right time. Advanced candlestick analysis. This is not that basic doji equals reversal stuff you may have seen elsewhere. Advanced candlestick analysis goes much deeper than that so that you have a full understanding of what a chart is telling you. Once you understand this, one glance at a chart will tell you who’s in control of price (bulls or bears) and if you should buy or sell.

These two techniques make up the core of my price action trading strategy. In fact, those are the only techniques I use to find and trade high probability setups. My trading strategy differs from most courses you will come across as it is based entirely on Price Action… There are NO indicators. There are NO confusing techniques. There is NO stress. It’s simply about reading price and making smart trading decisions. Forex Price Action Strategy. My Forex price action strategy was born in 2005 and has been constantly improved over the last 12 years – this strategy has seen it all. It has survived major market changes from the financial crisis in 2008 to the Swiss Franc disaster in 2014, to Brexit in 2016. It really has seen it all. My price action strategy works in all market conditions . From trending markets to low volatility, to ranging, to high volatility, it has weathered it all with consistent profits. Indicator based strategies work well in specific market conditions. If you have a strategy that works in low volatility markets, it will fail in high volatility, ranging, or trending market conditions. Price action adapts, indicators don’t! Price action doesn’t only adapt to changing market conditions though, it adapts to different pairs, different time frames and, crucially, to different traders. Above all, Price Action keeps your trading simple .

In fact, my Forex trading strategy is so simple that you can trade it from your smartphone. I use this strategy to trade on the go – as of 2017 I take over 70% of my trades from my smartphone. My Forex trading strategy was created with simplicity in mind. The most common downfall of today’s traders is over complicating their strategy. We have all seen charts that look like this. How can you trade comfortably using a chart like this? How can you trade efficiently using a chart like this? How can you trade from your smartphone using a chart like this? You can’t, it is too messy. The core rule of my price action strategy is to keep trading simple. Because the Forex trading strategies that work best are simple . The only thing I place on my charts is support and resistance areas . I use these support and resistance areas in conjunction with candlestick analysis to trade Forex.

So what does a clean Forex chart look like? Much better than the monstrosity above! This chart is uncluttered, easy to understand and to navigate, with nothing to distract you from analysing price action. This style of trading is quick, efficient, stress-free, and you can do it from anywhere, including your smartphone. So if you want a simple Forex strategy, keep reading. Chapter 2: Support & Resistance Areas. Support and resistance areas show you where to buy and sell, they are a vital part of every traders toolkit, and it is essential that you learn how to place them . What is Support and Resistance? Placing support and resistance areas is the most important skill you can master in trading. And placing them is easy. Support and resistance areas divide your chart up into buy and sell areas. An area that sits above current price is a sell area, any area below current price is a buy area. The terms buyers and bulls are interchangeable.

Support is a buy area as buyers are found at support. Resistance = Sell Area. The terms sellers and bears are interchangeable. Resistance is a sell area as sellers are found at resistance. On the GBPUSD chart below, you can see price is approaching the blue shaded area at 1.3500. This is a strong resistance (sell) area. When price approaches a sell area large amounts of sell orders are triggered countering buy orders. This usually results in price stalling or even turning around completely for a reversal. Why does this happen though? It’s simple, the market movers like banks and hedge funds place their orders at areas of support and resistance. Why Do Market Movers Place Their Orders At SR? Good traders don’t randomly place entry orders and hope that they get lucky. They place their entry orders at significant price levels. Significant levels come in many forms.

Yearly, monthly, weekly highs or lows. Rounded numbers such at 1.0000 and 1.0500 (also called psychological levels) All time highs or lows. Areas in which price has stalled or reversed more than once. In the GBPUSD chart example above, we can see that price has stalled at the 1.3070 twice (green highlights). The next time it approaches the level it pulls back again and then again two more times (yellow highlights). Because market movers place their buy orders at the 1.3070 and when price hits the area the buys trigger causing a reversal. This happens all the time on every Forex pair and in every financial market for that matter. This is how markets work, buy and sell orders are grouped together in the same general area and when they are hit we see the impact on price. Placing Support and Resistance Areas. There are a lot of indicators out there that claim to give you great support and resistance areas. I have tried them all and I do not find them reliable. Support and resistance placements still need to be done by a person.

These are my support and resistance areas, but if you want to trade more pairs you will need to place them yourself. A good Forex trading strategy requires some work! But don’t worry, it is easy, all you are doing is placing horizontal lines when you spot an area with two or more bounces. I am going to break it down into a step by step process for you though. But first, we need to define some rules for support and resistance areas. Three Rules to Support and Resistance. There are three key rules you need to keep in mind when placing support and resistance areas. Place areas on the body of a candle, the body is more important than the wick. The more recent the bounce the more important. Prioritise recent bounces over older bounces.

You need at least two connecting bounces to place a support and resistance area. There are a few exceptions to this, the most common one being for points which are yearly or all-time highslows. When you spot a year or all-time highlow you can place an area there even if it has only once bounce. Step By Step Guide to Placing Support and Resistance. Step 1: Select a daily chart and zoom out until you see around one year of data. Don’t worry if you see a little more or less than one year, it’s not a big deal. Step 2: Identify the highest and lowest bounces in the last year and place an area at each. Remember, place your areas at the bodies, not the wicks and as these are yearly highs and lows placing them based on a single bounce is enough. Step 3: Place support and resistance areas between the first two by connecting areas which have two or more bounces. You will generally find that there are 5-8 support and resistance areas on most charts. If you have more than 8 you probably placed too many. Chapter 3: Advanced Candlestick Analysis. Most new traders learn a little bit about candlestick analysis. But most of what they learn is completely useless! Well the standard approach to candlestick analysis is basic pattern recognition, which fails to work in real trading.

I delve much deeper than that, I look at the story behind the candle and in this chapter I will show you how to do that too. You can’t skip straight to advanced candlestick analysis without knowing some basics first. If you don’t know the basics, that’s fine, I got you covered! The Truth About Candlestick Analysis. When Forex traders first start out they usually learn about candlesticks. But what they learn is usually useless. They normally see a list of “candle patterns” like the one below. Each pattern has a set in stone definition and that is the only meaning it can have. This is not candlestick analysis, it is pattern recognition. And for a price action trader, it is useless. Actually, it is worse than useless. Thinking about candles as just patterns is counterproductive. It makes you a worse trader, it leads you to make massive mistakes. Giving a pattern a set definition leads to tunnel vision. When you see that specific pattern, you assume that something will happen. But that is not how candlesticks work.

All candlesticks need to be assessed based on the candlesticks around them, and many other factors. Below is a candlestick pattern commonly called a “spinning top”. Normally people say that a spinning top means a reversal is imminent, which can be true. However, this same pattern can also mean that a continuation is imminent. It can mean that price is temporarily stalling. It can mean a lot of different things. Thinking of candles as simple patterns is the wrong way to do things. You need to look beyond the pattern and read the story of price. Every single candle on your chart is telling you a story. When you combine those candles together, you get the story of price.

The foundation of my Forex trading strategy is reading and understanding the story of price. Reading and understanding the story of price is vital in Forex. It is vital because it allows you to answer one of the most important questions in trading… Who is in control of price? This question has three possible answers: buyers, sellers, or neither. Being able to accurately answer this question is vital. If you are about to enter a short trade and you ask yourself. “Who is in control of price?” and your answer is “buyers”, well perhaps selling is not a great idea. Let’s break down the story of price.

If you look at the three highlighted candles below, it is easy to conclude that sellers are in control of price. The candles all closed lower than they opened, they all created new lows beyond the previous candles low and they all had small upper wicks in comparison to the candle body. The small upper wicks indicate that buyers were unable to push price up by much. But what does the highlighted candle in the next chart tell us? It has a short upper wick, a small body, and a long lower wick. This is what I call an indecision candle. What’s an Indecision Candle? Indecision candles occur when neither buyers or sellers can gain and maintain control of price. They are common, but if used in the right way, they can be very powerful. Take a look at this bullish trend (yellow highlight), it is a strong trend, there are several bullish candles heading towards an area of resistance. The big bullish candles tell us that during the highlighted period buyers were in complete control of price. When price hits resistance we get an indecision candle forming (green highlight). Let’s break this candle down into a story so you understand why it indicates indecision.

Large Upper Wick (Blue Highlight) A large upper wick shows that buyers tried to continue the bullish trend but failed. Sellers took control of price and pushed it down. Small Bearish Body (Green Highlight) The small bearish body shows that sellers were able to close lower than the open. This is significant because in the three candles before this price consistently closed higher than open. This shows us that buyers are losing power. Small Lower Wick (Red Highlight) The small lower wick shows us that sellers were not able to gain much ground either. This tells us that sellers are not strong enough to turn price around completely. However, they are strong enough to stall further buyer movement. All together this indecision candle forming right after strong bullish candles suggests that power has shifted from a decidedly bullish (buyer) market to an undecided market. While sellers are not in control, neither are buyers. But there is one more thing we need to look at… … The indecision candle is forming on top of a resistance area.

Let’s looks at this chart again. If you remember, in the previous chapter we talked about resistance being a sell area and support being a buy area. So the image above shows us three strong bullish candles heading into a resistance area. And then… Price stalls and we get indecision forming on top of that area. This tells us that the sell area is working. When price pushed into that area sell orders triggered and buyers could no longer continue up. That is the story of price for this chart. And this story gives us a nice little price action trade setup. Chapter 4: Setups With My Forex Trading Strategy. Price action allows you to take many different types of trades, reversals, continuations, range, swing, breakout and scalp trades to name a few. In my free Forex trading strategy I will focus on one type of setup, the easiest to spot and trade, reversal . How to Spot a Reversal Trade. Reversals occur quite often, but if you do not know what to look for, you cannot trade them. Reversals are one of the strongest price action setups, and one of the easiest to trade. And because they occur so often, you can trade this setup exclusively and be a profitable trader.

In fact, for years Forex trading strategy focussed on reversals only. However, these days I trade more price action setups. Reversal trades come in three parts: The preceding trend. The Indecision candle(s). The reversal trend. Let’s break down each of these parts. A preceding trend is a strong move by the bearsbulls heading into an area of supportresistance. In the example above, the preceding trend is a very strong bearish move, indicating that there are a lot of bears in the market and very few bulls. If bulls were strong then price would not be trending down. The preceding trend shows us that bears (sellers) have strong control of price and they are pushing price down into a support area. The opposite applies for a bullish preceding trend which would show bulls (buyers) trending towards resistance, as you see below. A preceding trend can be formed by as little as one candle.

If the candle is strong and covers a lot of price distance, I categorise it as a preceding trend for the purposes of reversal trading. The example below shows a single candle preceding tend. Preceding trends are pretty simple. As long as you see a strong move heading into an area of support or resistance, you can consider it a preceding trend. The Indecision Candle(s) A reversal setup will have one to three indecision candles. The indecision candles need to form on or near to the support and resistance area. If indecision does not form on or near to the area of support and resistance, it is not a valid reversal setup. Why does it need to be on a support and resistance area? An indecision candle in a bullish preceding trend indicates that buyers are possibly losing control, and sellers may be gaining control. In a bearish preceding trend it indicates that sellers are losing control and buyers may be gaining control. However, an indecision candle does not indicate that price will reverse with any degree of certainty. An indecision candle indicates only one thing…

Indecision! You cannot take a trade based solely on indecision. The image below shows indecision forming between support and resistance. If you were to enter reversal trades based solely on indecision, it wouldn’t work out too well… What about when a bullish preceding trend heads into an area of resistance (sell area) or a bearish trend into support (buy area) and indecision forms? Well, then we get the makings of a high probability reversal setup. But we cannot enter just yet, we need confirmation, which comes in at part three of a reversal setup. The reversal trend is the third and most important part of a reversal setup. This is where we make our profit! After a preceding trend stalls at support, and indecision forms, you often see a reversal trend. The image below shows a bearish reversal trend forming after indecision on resistance. In this case we saw a transition of power from a bullish preceding trend to a bearish reversal trend separated by a stall on resistance.

Where do you enter the trade though? Let’s discuss that in the next chapter. Chapter 5: Trading Reversal Trades With My Strategy. You know what a reversal trade looks like. You know that you need to enter after indecision and before the reversal trend. In this chapter I will show you how to use my Forex trading strategy to trade reversals profitably. Don’t worry, entering reversal trades at the right time is a lot easier than you may think. My Forex trading strategy was built on reversal trading. It has now expanded beyond just reversals, but reversal trading is where it all started. Over the years I have refined reversal trade entries into a simple step-by-step process. Entering trades does not need to be difficult – remember, my goal is to keep everything simple. Getting in at the Right Time.

In the previous chapter I explained that a reversal comes in three parts. The preceding trend. The Indecision candle(s). The reversal trend. You need to enter the reversal trade after part two (indecision) closes, but before part three (reversal trend) completely takes off. Obviously if you enter after the reversal trend takes off, it is too late. You also need to make sure you do not enter too early as you could be entering a false setup. In the image below you see a preceding trend heading into support, indecision, and a failed reversal trend. If you entered too early, you would have failed this trade. Failed trades happen, there is nothing you can do about them. But getting in at the right time lowers your percentage of failed trades.

Many people wait for a candle close to get in, but I have tested this thoroughly and waiting for closes gets you in too late. In the image below you can see the first candle in the reversal trend closing far from support. This means you miss out on a lot of potential profit, which is obviously not good. The key to reversal trading, or any trading for that matter is getting in at the right time . So, how do you do that? How to Enter Reversal Trade. I have tested countless entry methods in the last 15 years. In that time I have found three awesome entry strategies: entering on new highlow, retrace entries, and distance entries. In my free strategy I will teach you the easiest, entering on new highslows. When indecision forms on an area of support or resistance, you can use the high or low of the indecision candle as an entry trigger and as a stop loss. In the image above indecision has formed on resistance after a bullish preceding trend, so we want to enter a short reversal trade. We set our entry a few pips below the low of the indecision candle, and our stop loss a few pips above the highest point of the candle.

In trading, highs and lows are very important. If a new low is created from resistance it indicates sellers have taken control of price, which means we want to be short. Our stop loss sits above the high as a break of that high would indicate buyers have regained control of price. For long trades you set your entry a few pips above the high of indecision, and a few pips below the low. This is the most simple form of trade entry, but also one of the most effective. Now that you know how to enter, you need to know where to set your target. Where to Set Your Target. Targets are also very easy, you need to make sure your target comes before major barriers like the next area of support or resistance. So, if you enter a long reversal from support, make sure that your target is before the next resistance area. The minimum risk to reward ratio I use is 1:1.5 R. This means that my target has to be a minimum of 1.5 times the size of my stop.

If my stop is 100 pips, the minimum size of my target is 150 pips (1.5 x 100). If my stop is 75 pips, the minimum size of my target is 112.5 pips (1.5 x 75). If there is a major barrier like the next support and resistance area in the way of my minimum target I skip the trade. In the image above the support area is before my minimum target of 1.5 R is met so I skip the trade. What Pairs and Timeframes With The Forex Trading Strategy? The last thing you need to know is the pairs and timeframes. This strategy works on every single Forex pair, and it also works in other markets like cryptocurrencies, options, futures, stocks and everything. I trade around 10 pairs regularly. However, I often have extra pairs on my list that I monitor. If you want to see what I am currently watching check out my weekly analysis on YouTube. As for time frames, I currently trade these. Many people do not have access to the 6, 8 and 12 hour time frames because their broker doesn’t support it. The general rule in trading is the more time frames you trade the more trades you find. If your broker does not support 6, 8 and 12 hour time frames you need to find a broker who does, or simply use a charting platform separate to your broker. While this strategy can be traded with just the 4 hour and daily time frames, there is absolutely no sense in sacrificing potential trades because your broker is too outdated to provide new time frames. Chapter 6: Learn More About My Forex Trading Strategy. If you want to get my latest analysis, or want to learn more price action setups, I got you covered.

Every Monday I do weekly analysis using my price action strategy. You can check it out on my YouTube channel. If you want a more in-depth guide to my Forex trading strategy you can check out Forex Mastermind. In my course, I expand on this strategy, and I also share different price action strategies. Learn My Forex Scalping Strategy. While the strategy above is an awesome day trading strategy and even a swing trading strategy, for scalping you will need a different approach. In this article, I share my Forex Scalping Strategy.



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