10 Winning Forex Strategies

  1. Charting trends and the price range of markets
    Use long term graphics in order to decide between trends or markets range. Begin analysis chart with graphs daily, weekly, monthly even embrace, if possible, several years. A chart on a large scale shows essentially the life market and provides a much clearer perception and a better long-term perspective of the market. Once the long term sets, see charts daily in a single day, they contain all kinds of graphs that describe the life of the contract and go back up 10 minutes earlier. The data market in the short term may disappoint. It is better to negotiate in the same direction as trends in the medium term and longer term, even if you operate only very short term. If you do not spot a trend, it is necessary to turn to another strategy. It is possible to play the game and stick to the range of the market until it resumes its movement. As can be seen on the one-hour EUR / USD candlestick chart below, there has been an upward trend with three peaks and three hollow. The entry of long positions would be 1.2700, 1.2760 and 1.2800.
  2. Follow the Trend If you determine the trend, you must follow it. Market trends have several words: long, medium and short. You must first decide what kind of trading that you intend to do: long term or daily. This decision will determine the type of graphics you’ll use. If you are a daily negotiator for example, use graphics of the day. Help yourself by always graphing the longest range in order to determine the trend, then a graphic short-term timing. Make sure you negotiate in the direction of the trend in question, then buy on immersions if the trend is rising and sell on rallies if it is declining.
  3. Locate levels of support and resistanceFind support levels and resistance. It is best to buy near support levels as when you buy an instrument support is generally a low response beforehand. Following the same logic, the best place to sell an instrument is close to resistance levels. The level of resistance is usually a peak beforehand. Following the rupture of a peak strength, support further withdrawals will normally be provided. In other words, the former senior becomes new low. The patterns is the same when a support level is broken, and this usually causes the sale of future gatherings where the former bottom becomes the top again.
  4. The Sequences Measure the tracing in terms of percentages. The market correction, up or down, often retrace a significant portion of the previous trend. It can measure the corrections in an existing trend in simple percentages. A trace of fifty percent of a previous trend is the most common. A minimum trace is usually only a third. The maximum tracing is usually two tiers. It’s also valid to look at the Fibonacci retracements of 38% and 62% as the current acquisitions points during an upward trend are generally between 33-38% of the retracement of the initial trend.It is possible to distinguish the extended Fibonacci levels in the hourly graph EUR / USD below, where the palm of 1.2750 connects the peak of 1.2890. The first tracing ends on the line by 38% and the tracing ends on the main line of 62%.
  5. The trend lines One of the simplest and most effective graphical tools are the trend lines. Draw a straight line connecting two points on the graph. The trend lines are drawn at the top along two lines successive low, down trend lines are drawn along two successive peaks. Prices will often withdrew to their trend lines before resuming their own. The failure of the trend lines often change indicates a trend. The more a trend line remains in force, over time it is experienced and therefore becomes more significant. A trend line becomes a valid condition if it’s touched three times.
  6. The moving averagesThe moving averages often provide signals goals of buying and selling, which is why it is important to look at. They show you if an existing trend is still moving everything and helping you to confirm a change in trend. Do not rely on moving averages to determine whether a change in trend will imminently take place. Rather use your support analysis chart in the identification of trends. The most common way to find signals trading is a combination of two graphics moving averages. The signals are given when the average short line crosses the long run. Prices passing below or above of a moving average of 40 to 200 days also provide good trading signals. The graphic lines of moving averages give better results in a market trend because they are indicators of trend followers.As can be seen in the hourly EUR / USD graph below the moving averages of 5 and 25 times project and confirm the trend in progress. The average mobilede 5 through periods over the average slower than 25 times to 1.2715, this confirms the trend with an increase exit point at 1.2770. The latter rate is another indication of a resumption of the upward trend with an exit at 1.2850.
  7. The oscillators The oscillators help identify markets in a state of overbought or oversold. While moving averages provide a confirmation of the market trend, the oscillators can often anticipate the gathering or falling too far of a market that is about to return or to trace. Two oscillators most common are the relative strength index (RSI) and the stochastic. Both oscillators operate on a scale of 0 to 100. When the RSI is above 70, there is an effect of overbought, against lorsu’il is below 30, there is an effect of oversold. The values of overbought / oversold for stochastic are 80 and 20. Divergent oscillators often warn of a reversal of market and contrary to the moving averages, they work better in markets where the price range remains the same. The weekly signals can be used as filters on signals dailies, the latter in turn can be used as filters for graphics in a single day.As can be seen in the hourly EUR / USD graph below the stochastic break barriers 80-20 and then returned on themselves for the correction of the course. This process is repeated several times.
  8. Learn the warning signs Indicator convergence / divergence of the moving average (MACD) combines a system moving averages crossing with mobile elements overbought / oversold of an oscillator. A “purchase” signal occurs when the fastest line passes over the slow and they are both below zero. A “sale” signal occurs when the fast line, which starts above the zero line, passes below the slow line. The signals of the long periods precede the signals of the short periods. The MACD histogram determines the difference between the two lines and gives an early warning of changes in trend. This is called a histogram because it uses vertical bars to show the difference between the two lines of the graph.As can be seen in the hourly EUR / USD graph below the MACD indicators intersect under the zero line to show a “buy” signal, “sale” is done with the reverse process. This happens so much more striking at 1.2760 for purchase and 1.2870 for sale.
  9. The trend or the market price rangeThe line of the average directional index movement (ADX) helps determine if a market is in a phase of a trend or price range. This tool measures the degree of trend or direction of the market. An ADX line suggests the presence of a strong trend. The fall of an ADX line seems to indicate the presence of a trading market and the absence of a trend. A rising ADX line favours moving averages, while down favours oscillators. In deciding the direction of the line ADX, the negotiator has the possibility to determine the style of negotiation it wishes to adopt and the series of indicators which are most suitable given the current market environment.
  10. Train yourself Technical analysis is a skill that improved with experience and training. The more you learn and you train, the better you become. Continue to train you, find methods that suit you; learn what works for you personally and what is not. Finally, keep technical and avoid getting emotional.