Popular Forex Trading Strategies
Forex trading is done best if done with the best Forex trading strategies in hand. Over the years countless number of different strategies was invented and some rely on the technical use of charts and numbers while some use the fundamental understanding of the market with reference to current News and events. Some strategies develop in popularity while some others are used only by a small portion of the traders. We will discuss some of popular Forex strategies here in this article.
One of the most popular Forex trading strategies
Support and resistance level is one of the most popular forex trading strategies and every trader should learn how to look for support and resistance levels on the charts. This strategy serves as a baseline for trading activities and analysis of trading. The best thing about this strategy is that a good trader can spot the support and resistance levels even on a naked chart since they are ease to be identified.
Scalping technique is a great trading technique for many traders. It is a low risk strategy but it allows traders to make strong profits over the time. A great amount of patience and alertness is required in the scalping technique. Emotionless trading has to be strictly performed along with this strategy as they lead to compulsive actions not good for this kind of strategy.
Trading with trends
Trend trading is one of the leading Forex trading strategies today and helps in increasing the profits significantly. The strategy belongs to the identification of the trend and trading alongside it. Though this strategy seems to be easy, in real sense many dilemmas pop up when trying to identify the trend and thus trend trading strategy requires a lot of trading skills.
Hedging is one of the most popular Forex trading strategies in which you try to limit the risk and increase the probabilities of winning. The hedging technique is very popular today and in fact many Forex institutions make it a mandatory technique in their tactics.
Multiple time frame trading strategy
This is following a currency pair over different periods of time. Through the analysis of a currency pair over different time periods, it is possible to spot the trends on bigger and smaller scales thus making a better analysis.
Candlestick Forex trading strategy
Candlestick charts are one of the most popular Forex charts and it is used widely by retailers as well as investors. The story of past price action is told easily by the candlestick charts. When trading is based on the technical analysis of these charts, the decisions on the future price action are made mostly on how the price reacted in past. The candlestick chart trading strategy is perfect and most widely used amongst the traders.