Sometimes, a significant amount of information and Forex
Trading strategies that we find around trading can be overwhelming. As we know,
our forex market is massively liquid, having a large number of players. Its
popularity has led many of those involved to devise strategies that for the
initiated may interfere more than anything else in their education.
Precisely, today's article goes back to the basics to start
in this fascinating world, and once you have internalised the basics, it will
be time to master complex actions, regardless of whether you choose a simpler
or more complex one. Do not forget to use what works for you.
A Few Of The Simple Strategies A Beginner Can Deepen More
On the one hand, we have the consistent Forex Trading
strategies to follow the trend, which is distinctly seen when the price moves
in a specific direction, this trend may be bullish or bearish. A trend tracking
system produces buy and sell signals, which align with the formation of new
trends.
Following the Forex Trading trend can produce great
benefits, but it also has its drawbacks because trends are difficult to follow,
major trends are rare, although we will always have to adapt the possible trend
to the time frame in which we work. In fact, it is very possible to see a micro-trend
in graphics of 15 minutes and even 5 minutes, although that trend can be 30 or
40 pips.
The Market Support And Resistance Zones
A big problem with a trend tracking system is that you need
more money than usual to use it correctly. Therefore, it may not be ideal for
beginners with fewer resources. In any case, this should not be a determining
factor in minor temporaries.
Another simple Forex Trading strategy is to look for
breakages. It’s known that markets extend between support and resistance zones,
which is known as consolidation. A break is indeed while the market actually
moves away from the limits of market’s consolidation, and move to new highs or
perhaps lows. As soon as a new trend happens, the first thing that must happen
is a break.
A reasonable Forex Trading strategy of long-term break is
possible when the price breaks above the maximum of 20 days, in the case of
purchase. The sale signal is given when the price breaks below the minimum of
20 days. Anyway, always have to be alert to false signals, and for this, we
have the use of stops.
The Forex Trading SMA Strategies
The use of simple moving averages (SMA) is also a simple
Forex Trading strategy to get into Forex. SMA is a lagging indicator that uses
price data older than most strategies and moves more slowly than the current
market price. A longer moving average is often used in combination with a
shorter moving average.
For example, you can use a 25-day moving average in
combination with a 200-day moving average. The first will follow the price very
closely, while the second will soften the movement. When the shortest moving
average crosses the longest, it indicates a change in trend. If it moves above
it indicates an upward trend and is our buy signal. If it moves below, it truly
suggests a great bearish trend out there and is our selling signal.