Locating the trend: Markets trend and consolidate, and this process repeats in cycles. The first principle of this style is to find the long drawn out moves within the forex markets. One way to identify forex trends is by studying 180 periods worth of forex data. Identifying the swing highs and lows will be the next step. By referencing this price data on the current charts, you will be able to identify the market direction.
!function(n){function e(e){for(var t,r,i=e[0],a=e[1],u=0,c=[];u1&&arguments[1]!==undefined?arguments[1]:"",t=window,r=Date.now();if(n=e+n,t.ansFrontendGlobals&&t.ansFrontendGlobals.settings&&t.ansFrontendGlobals.settings.gates&&t.ansFrontendGlobals.settings.gates.react_console_log_perf_info){var i=t.performance&&t.performance.now?t.performance.now():r;console.log("".concat(n,": ").concat(i))}o[n]=r}},iuEU:function(n,e){n.exports=react-relay},oqNQ:function(n,e,t){"use strict";t.r(e);var o=t("S0B4");Object(o.a)("entryLoaded");var r=function(n){Promise.all([t.e("vendor"),t.e("common")]).then(t.bind(null,"A+VG")).then(function(e){n(e)})};window.runApp=function(){Object(o.a)("runAppCalled"),r(function(n){n.runApp()})},window.inlineReact=function(n,e,t,r){Object(o.a)("InlineReactCalled","loadable"),a(n,e,t,r)},window.shimProxy=window.shimProxy||{webnodeSubscribeEventsQueue:[]};var i=!1,a=function(n,e,t,a){var u=function(){i||(i=!0,r(function(r){Object(o.a)("StartAppInlineReactCalled","loadable"),r.inlineReact(n,e,t,a)}))};window.shimProxy.webnode?window.shimProxy.webnode.subscribe("REACT_LOADABLE_LOADED",u):window.shimProxy.webnodeSubscribeEventsQueue.push(["REACT_LOADABLE_LOADED",u])};window.renderPrefetchedPage=function(n,e,t,o){r(function(r){r.renderPrefetchedPage(n,e,t,o)})},window.reportPageSpeedData=function(n){Promise.all([t.e("vendor"),t.e("common")]).then(t.bind(null,"pys6")).then(function(e){e.reportPageData(n)})},window.setTimingData=function(n){Promise.all([t.e("vendor"),t.e("common")]).then(t.bind(null,"pys6")).then(function(e){e.setTimingData(n)})},window.setGlobalMetadata=function(n){Promise.all([t.e("vendor"),t.e("common")]).then(t.bind(null,"Gnru")).then(function(e){e.setGlobalMetadata(n)})},window.updateGlobalMetadata=function(n){Promise.all([t.e("vendor"),t.e("common")]).then(t.bind(null,"Gnru")).then(function(e){e.updateGlobalMetadata(n)})},window.setServerPerfCheckpointData=function(n){Promise.all([t.e("vendor"),t.e("common")]).then(t.bind(null,"pys6")).then(function(e){e.setServerPerfCheckpointData(n)})},window.setWebnodeLoadable=function(n){Promise.all([t.e("vendor"),t.e("common")]).then(t.bind(null,"0xW3")).then(function(e){e.setWebnodeLoadable(n)})}}});
Starting as a student of FMP back in 2011, Pierre studied hard and now trades Forex full time from his home in South Africa.  Pierre teaches his unique Earth & Sky Trading System. Every day he provides updates as to what he is looking to trade for those following his trading strategy. Its a step by step process so its great for beginners & experienced traders alike.
Some of the other best forex trading strategies are based on the technical analysis. This method is particularly important in day trading. Technical analysis is useful to traders in that it gives them an indication of times when they can enter or exit the market. It also helps the trader to make the most out of the existing market status. Given below are brief explanations of some of the technical analysis based trading strategies.
Forex strategies that are traded based on strict mathematical rules with no ambiguous conditions and no important trading decisions to be made by the trader are called mechanical. A good example of a mechanical system is a moving average cross strategy, where MA periods are given and positions are entered and exited exactly at the point of cross. When working with mechanical trading strategy, it is easy to backtest one and determine its profitability. You can also automate such system via MetaTrader expert advisors or any other trading software. The usual drawback of such strategies is their lack of flexibility before the fundamental changes in the market behavior. Mechanical strategies are a good choice for traders knowledgeable in trading automation and backtesting.
The forex trading strategy Carry Trade is different from other forex strategies. While most of the Forex trading strategies follow the concept “buy low/sell high”, Carry Trade relies mainly on the difference in interest rate between the currencies. This means that forex traders can make profit even if the market is stable. When employing this strategy, traders buy a currency with a high differential ratio, meaning the interest rate of the currency they buy will be higher than that of the currency they sell.

Apart from the entry/exit rules and optional money management guidelines, strategies are often characterized by the list of trading tools required to employ the given strategy. These tools are usually charts, technical or fundamental indicators, some market data or anything else that can be used in trading. When choosing a strategy, you need to understand, which of the required tools you have in possession.
×