Whether you are already into forex trading or yet to try it out, we’re here with our expertly curated list of tested and must-have forex trading strategies. If you’ve not zeroed in on a particular trading strategy, go through the ones we share here. You’ll probably find something to expand or put a spin on your crypto trading game.
The Fibonacci pivot combines Fibonacci retracements, which maps support and resistance levels with daily pivots in the trading chart. Together, these produce signals for trade entries. You can rely on the support and resistance levels plotted using this strategy to go either long or short.
While the Fibonacci pivot trading strategy works accurately on charts of time frames from five minutes to a week, it is better known for being used during day trades.
And whether you go short or go long on a trade using this strategy, make sure that 100 percent Fibonacci retracement is attained and it converges with a pivot point.
2. Blade Runner
One of the best in the list and the easiest strategy to implement is Blade Runner. That’s because it uses only one indicator — the 20-day exponential moving average.
When using this, look for places where the price cuts the exponential moving average from either direction. If the price cuts through the indicator and retests it, you can enter a trade. Depending on whether the price cuts above the moving average or below it, you can decide whether to go long or short.
Check that the candle that tests the exponential moving average closes on the same side and whether the next candle confirms the trend.
3. Forex Dual Stochastic
To implement a forex dual stochastic trading strategy, you need to speculate the fast as well as the slow stochastic signals. Considering 20 percent and 80 percent as the extreme levels, you need to execute a trade when both the stochastics touch opposite ends.
You can go long when the slow stochastic signal touches the extreme upper level and the fast one coincides with the lower level. When the opposite happens, you can execute a short trade.
Along with stochastic, you should use the 20-day exponential moving average as an indicator, and you must find suitable candlestick patterns around the signal area.
4. Overlapping Fibonacci
Fibonacci retracement is a reliable indicator, and when two of them are combined to produce buying or selling signals, they deliver outstanding results. Conventionally, Fibonacci retracement levels of 38 percent and 79 percent are used in the overlapping Fibonacci strategy.
In this strategy, when the two Fibonacci retracements overlap they lend a strong trend reversal signal. This, combined with different patterns or indicators — such as support and resistance levels, candlestick patterns and pivot points — may produce the most reliable results for you.
5. Bollinger Band Bounce
One of the most common difficulties that forex traders face is trading in a sideways market. Bollinger Band bounce is a strategy that you can implement so that you don’t have to skip trades when the market moves sideways.
If you’re sure that the price movements are occurring within a range, you can then rely on the Bollinger Bands. You can wait for the trend to test either the upper or lower band. And when it does, look for a supportive candlestick pattern — bullish in case the pattern touches the upper band and bearish if it touches the lower one — to confirm the trend reversal.
It would be best if you are very precise with your stop loss, entry, and exit to succeed at implementing the Bollinger Band bounce strategy during a sideways market.
A little recap
Many other trading strategies could have made our list, but we found the five above to be easier to implement. Despite knowing these strategies, those who are fresh to forex trading might still find it intimidating. Don’t fret!
By implementing a strict discipline to your trading pattern, getting practical experience and using resources like the ones you’ll find on our site, you’ll get better and better every day. So, are you ready? Register here to trade with a fully licensed and regulated broker.