Best forex trading strategy
3 Best Forex Trading Strategies Beginners Can Start
There are 3 strategies, namely technical level trading, Channel trading strategy, and moving average trading strategy
What is a Trading Strategy?
A trading strategy is a list of steps to be followed while trading. It describes the market conditions in which trades can be opened, indicates the direction of the position, and where stop losses and take profits should be placed. Usually, this rule also determines the position measurement and financial instruments that can be used by this trading strategy.
Apart from trading strategies, traders in Malaysia need to choose the right broker. One of the brokers we recommend is Forextime (FXTM). Next, we will look at forex trading strategies that even beginners can master and use to profit from the financial markets.
1. Trading Technical Level
This trading strategy is also known as support and resistance trading. It is based on technical analysis rules. There are several horizontal levels. If the price reaches them, it will cross or separate them and proceed to the next line. According to this strategy, prices move from one strong level to another and you can open trades between them using reflection or breakout techniques.
When trading with this profitable trading strategy, you need to indicate the price level in the monthly period you are working (for example, hourly period). Horizontal lines are drawn along the high or low of the chart, the shadow from which a strong movement has begun, the value from which the price rises and falls (mirror levels) and the price is in a sideways trend.
The rules for opening a position are quite simple:
- By aligning Suliliort’s level, the lotus can soar high or snap and fall lower.
- As we recover later, we see a long lilac loss on the back of the next false loss, with Lirofit approaching the next level of resistance. The risk/reward ratio should be 1:3 or at least 1:2.
- When the lyric breaks the Suliliort level and corrects it with a reflection as resistance, we close the short position and reduce the loss of the table above the maximum by confirming the lycophyte follower and placing it near the next level below.
Next, we will look at forex trading strategies that even beginners can master and use to profit from the financial markets.
2. Channel Trading Strategy
At the heart of this trading strategy are technical analysis and Charles Dow’s theory that prices move in the direction of the main trend (channel movement).
The market channel can be up or down. In addition, the price usually moves in a descending trend, which is a corridor between two horizontal levels.
The rules of this trading channel are very simple:
- When there is an uptrend, we only trade on the third spike and so on in the price of the support line. Stop-loss orders should be placed behind the previous lower or lower channel boundary with a slight strengthening below the resistance line.
- Likewise, if there is a downtrend, we will only open short positions if the price jumps from the resistance line. Stop-loss orders should be placed above the resistance line with a slight increase above the lower trend limit.
- If the trend is sideways, we recover from two directions: we trade long with support with a target on the ceiling and we sell with a target at support when the price recovers from resistance.