In many cases, when the words Forex Trading Strategy are mentioned within a conversation, there arises the question of reliability. There are several strategies that can be followed by traders, from newbies to well-seasoned traders, to full-timers and even part-timers. There is, however, no strategy out there that produces a full-proof system that never incurs a loss. That is simply a myth. Here are some good and consistent forex trading strategies that you can try out.
- Minute Forex Scalping Strategy with CCI and Slope Indicator
This is quite a demanding Forex Trading strategy. It requires two main things; a very high level of discipline and the ability to analyze and process information at a very fast rate. The price momentum is determined by a proprietary technical indicator, the TMA Slope MT4 Indicator. This strategy provides you the speed and precision to trade within a narrow tie frame like the one-minute time frame. It is however not a complex strategy, making it easier to follow and use. The buy trade is triggered when the CCI turns green and it drops below the -100 mark. When the CCI turns red and rises above +100 mark, the sell trade is then triggered.
- Ichimoku and MACD Momentum Strategy
This is a trend following Forex Trading Strategy that works best for the swing traders. These are the traders that hold trades for slightly longer periods, from overnight to a number of weeks. It works best in the environment of trends. It, however, falls short in the ranging market by producing several entry signals that are usually false in nature. This is why the strategy is only broadly applied once a clear trend has manifested. The Ichimoku Cloud feature is used to spot the trend, then identify a potential resistance or support point that can prove useful as a market entry. The number of false positives is minimized by incorporating the MACD indicator. This also serves to tune the system further and increase its reliability.
- The London DayBreak Strategy
This is a day trading strategy, and as the name suggests, it makes use of the London open trading range. This is a momentum breakout strategy that can serve part-timers best. It only requires a maximum of fifteen minutes of your time each day. It utilizes two indicators, MACD and the 50-EMA. MACD serves as the trend following momentum indicator. For a buy signal to be triggered, the trade needs to be above the 50-EMA, with the MACD histogram rising above the signal line. The sell signal is triggered in the reverse of these conditions. The most suitable time frame for this Forex Trading Strategy is the 15-minute time frame.
The choice of a strategy is highly dependent on your taste, and the type of market you are looking to trade in. What works for your counterpart may not necessarily work for you, so choose wisely? You should also decide on a strategy based on your level of strictness in adherence to the constraints of the system and the amount of patience that you can exercise in any situation. If your patience levels are wanting, then a scalping method is what you should always opt for. More patient people can spring for longer term trading strategies. You can also sample a larger variety of Ideal Forex Trading Strategies.