When Trading on expert option like Forex is similar to gambling if you trade based on luck. However, if you’re a follower of planned strategies, there are a lot of them in the market but trying to learn all of them is not possible. Following simple strategies will make your experience in Forex richer. To refrain from spending too much time in trading also to gain steady and regular wins, you should master at least three strategies. This article is about the strategies of trading for both beginners and veterans on the trading platform.
What are the best strategies for expert option?
Your best suiting strategy will depend on the array of signals you have chosen based on your analysis method. Few are listed below, see if you find any of them to your preference.
Method of Technical Analysis:
In this technique, you have to forecast future price movements by studying the markets’ past and future actions.
By studying the chart you’ll have to analyze the movement of the candlestick since the pattern of candlesticks gives away the reverse or continuation of tendencies. Two of the most popular methods are,
- Tendency Reversal
- Tendency Continuation
- Engulfing Candlestick Strategy: When the candlestick’s body gets larger than the last one, the chart gives a reversal signal, also the candlestick turns to a different direction. Check the direction of the succeeding signal if you see such an occurrence. Prepare to trade on the next candlestick if it takes on an engulfing direction. This indicates a hyped momentum in the market and lets traders enter the market while it’s picking up.
- Squat candlestick technique: This method allows traders to know about the definite direction of the market’s uncertainties. In crucial price levels, if you see a smaller candlestick with a long shade, a change in present tendency is scheduled.
- Tweezers Candlestick Strategy: Another strong reversal signal which comprises when two candlesticks take different directions along with similar high and lows. You may find them at the top of up-trends or the bottom of down-trades.
- The strategy of three methods: When there is a trend pause on the chart, you’ll see a small candlestick preceding a long one. When the big candlestick moves toward the trend direction and closes the pattern, it gives the continuation signal and once they close that candlestick, that’s when you should trade.
- Understanding Strength Level Signals: The points where price charts stop or reverse is called strength levels, they are used to identify price levels for assets. It helps the traders to choose trading times that suit them best. Two key strategies that work with strength levels are,
- Breakout Strategy: After the price graph breaks out at the present level and continues to advance in the same inclination that is the time suggested to traders to open trades. Once the candlestick’s body breaks out a current resistance and a new one moves in a similar tendency, you should open the trade then.
- The strategy of Reversal: Bases on the price direction of an asset, traders are required to open a trade once the price chart reverses. If a candlestick does not close after reaching a level might be with body or shade, that’s traders’ cue. Suppose, the candlestick closes inside a certain level with its shade touching, it implies that the price is not likely to surpass it. When a new candlestick appears in the reverse direction, that’s the confirmation signal.
- Computer Analysis: This technique uses chart indicators to find the accurate entry point. The three main indicators for the analysis are,
- The strategy of Moving Average: The moving average and price chart line gives two types of signals – Tendency Reversal when the chart crosses the moving average line, and if it bounces off the line it’s the signal of Tendency Continuation.
However, you’d require software to indicate moving averages, you’ll also need to set a different period for each tool.
- Alligator Strategy: This interesting indicator shows the beginning of trend movements in the market. This strategy is based on the theory that traders win the most profits during the strong trading phases. Using this method, you can catch the transition from the hibernation to an active trend, letting you make maximum profit.
- Bollinger Band Strategy: This strategy is easy to use, these bands replace trend channels because they show the direction toward which the price moves. The channel set around the price movement of an asset helps to identify potential reversals, the trend’s direction to make a better decision regarding trades. When the band returns to the central indicator line, wait until the price moves outside the indicator, then return inside, closing the candlestick – then you can deal directed toward the central indicator line.
Conclusion: These strategies should help you at least get an idea of what you need and which strategy suit you best, but note that there is no best one strategy. So choose any strategy described above and should you need to change it according to your perspective that fulfills your needs.