Forex Strategy gap

Forex Strategy gap - an interesting trading system that uses one of the most challenging phenomena of the Forex market - week break (gap) between the closing price last Friday and the opening price for her next Monday. By itself, the gap appears due to the fact that the interbank foreign exchange market continues to operate on the weekend, opening on Monday at a price with the highest level of liquidity. The proposed strategy is based on the assumption that the gap - this is the result of speculation and excessive volatility, and therefore the position open in the opposite direction, with high probability to become profitable within a few days.

Features

• Regular trade with clear rules.
• There can be no hunting for stop-loss or premature triggering stop-loss.
• Statistically proven results.
• You will have open positions at the beginning of the week and close smoothly before the end of week session.

Strategy for trading on the AUD / JPY on Wednesday

Strategy for trading on the AUD / JPY on Wednesday - exploits the tendency of a currency pair AUD / JPY (Australian Dollar against the Japanese yen) are statistically more likely to fall during the penultimate hour before the accrual swap on Wednesdays. This day of the week, especially because on Wednesdays swap is three times higher than on ordinary days (there is also a charge for two days off). It is unknown why the AUD / JPY, couple with the traditionally positive swap, sold for 1-2 hours prior to the accrual swap. Perhaps traders (or more precisely hedge funds) with large long positions prefer partially closed at this time, so not much to rock the market. This strategy was embodied in a fully automated expert advisor platforms MT4/MT5.

Features

• Based on fundamentals.
• A very simple strategy.
• Statistically perfect.
• Only one transaction per week.
• Abrupt changes in interest rates may affect the strategy.

Carry trade strategy

Carry trade strategy - one of the most popular trading forex strategies. It is used not only ordinary traders, but also large hedge funds. The basic principle of carry trade strategy - is to buy a currency with high interest rate and currency trading with a low interest rate. This layout allows you to make a profit not only from the vibrations of the currency pair quotes, but also on the difference in interest rates (swaps). This strategy can only be used under normal global economic conditions. Do not use it during the crisis. Remember that your forex broker should be one of those who pay the swap, so you can make a difference in interest rates.

Features

• Long-term profits.
• Two sources of revenue.
• It only works with a growing global economy.

Trading strategy in forex important news

Trading strategy in forex important news - designed specifically for trading on Forex news with the least possible risk. It can be used only when entering a very important news, such as the U.S. economy, the number of jobs created in the U.S. and interest rate decisions. Although almost all currency pairs react to such news, the best results show dollar currency pairs.

Features

• Trade will have a fundamental basis.
• Not difficult to start trading.
• A high percentage of success.
• Important news out very often.
• High volatility and enhanced spreads during news outlets.

Forex Trading Strategy "Support and Resistance"

Forex Trading Strategy "Support and Resistance" - a widespread trading system based on the horizontal support and resistance levels. These levels are formed by highs and lows of candles. The breaking of these levels after a period of consolidation signals the beginning of a trend. This strategy does not require any graphical indicators, except the opportunity to draw the line (at least in imagination).

Features

• Well defined low level of stop-loss.
• The relatively high percentage of profitable positions.
• Fuzzy target levels.

Scalping

Scalping (Forex System) - a simple trading strategy for forex market, which consists of an extremely large number of transactions in a short period of time with low stop-loss and a lower take-profit. Not all forex brokers allow traders to scalp, and not all of those that are allowed, suitable for this. Scalping is also not suitable for all traders. Personally, I will not recommend scalping. Here is a very simple version of the strategy Forex scalping.

Features

• Good profit for traders with good fortune (intuition).
• No need to follow the fundamental, technical, or even in any analysis.
• Spreads are eating most of the profits.
• A low ratio of profit to risk.
• Not all Forex brokers support scalping.
• Requires a lot of time to trade and monitor schedules.

Trading Martingale system

Trading Martingale system - based on the popular system of betting in France of the XVIII century. The main principle of this system - it is doubling bets after every loss, so if you win (get your rate plus 100% return), you up for all the losses and also earn the amount of the initial bet. If someone had an infinite amount of money, this strategy would be a win-win option, since the probability of an infinite number of bets to win in one of the outcomes would be equal to 1. The problem is that no one trader is not an infinite amount of money and, therefore, this strategy leads only to spend the entire deposit. And, although this strategy is very popular among forex traders and is used in many paid expert advisor forex market, I strongly recommend against using it.

Features

• Theoretically, a win-win system.
• Practically useless.
• Relation to the rate of gain may reach very low levels.

Simple Forex Trading System price

Simple Forex Trading System price - an interesting strategy, which was recently developed by one trader. It works for any currency pair (although recommended for EUR / USD) and in all market conditions. To trade with this system are not necessary indicators. All you need is the opportunity to display pending orders.

Features

• Position trading in all conditions.
• Trailing stop to protect profits.
• Insufficient statistical data about the success.

Forex Trading Strategy "inner bar"

Forex Trading Strategy "inner bar" - is a fairly simple system, based on a graphical figure called the "inner bar» (inside bar). This figure is very reliable as an alarm, but unfortunately, it is quite rare. This strategy does not require the use of any indicators.

Features

• Well-defined input conditions.
• Very simple graphics.
• A high percentage of profitable positions.
• Input conditions occur rarely.

Trading Strategy on a combination of stochastic and moving average

Forex trading system for the stochastic and moving average - a fairly safe strategy for trading in financial markets, which is based on a standard indicator stochastic oscillator (Stochastic Oscillator) in combination with standard exponential moving averages (Exponential Moving Averages). You can use moving averages as an indicator of long-term trend, while stochastics will show you a short-term overbought / oversold conditions, where you can successfully enter the market pullback.

Features

• Fairly reliable.
• Trade with the trend.
• Not very easy to follow this strategy.
• No specific target levels.

Trading Strategy with MACD divergence

Forex Trading Strategy with MACD divergence - one of very reliable systems based on standard indicator MACD. And, to be exact, then the divergence between the line and the MACD line price on the chart. This system has a rather vague entry and exit points, but the signals are easily identified and positions can be quite profitable, as the strategy helps to catch rollbacks and trend reversals.

Features

• It is easy to detect signals.
• Uses only one standard indicator.
• A good profit potential.
• Levels of take-profit and stop-loss rather vague.
• The signals are seldom seen on the long-term charts.

Trading strategy with stochastic oscillator

Forex Trading Strategy with a stochastic oscillator - an interesting system with a fairly low level of losses. It is based on a standard indicator stochastic oscillator (Stochastic Oscillator), which shows the fatigue trends and their change. This means that you will almost always be able to enter the market on pullbacks, getting an opportunity to exhibit relatively safe stop-loss.

Features

• It is easy to follow.
• Uses only one standard indicator.
• Safe levels of stop-loss.
• Non-optimal levels of TP.

Parabolic SAR strategy with

Example

Forex Trading Strategy with the Parabolic SAR - a somewhat risky system that is based on direct signal indicator Parabolic SAR (Parabolic SAR), which shows the levels of stop and reverse the trend.

Features

• It is easy to use.
• Only one standard indicator.
• Conditions of entry and exit are given by the indicator.
• The delay indicator.
• It is very risky and not always profitable strategy.

Trading strategy with the intersection of two moving averages

Trading Strategy from the intersection of two moving averages - a simple system that is based on the intersection of two standard indicators - fast EMA (exponential moving average or exponential moving average) and a slow EMA. You can also use our free expert advisor Adjustable MA for automated trading platform in MetaTrader.

Features

• A very simple strategy to use.
• Use of simple indicators.
• It is easy to identify stop-loss.
• Moving averages brake - a delay may be up to 10 bars.
• Is not effective during lateral movements in the market.
• 
  

Preparations for the trade

1. Any currency pair and timeframe.
2. Add the exponential moving average on the schedule, set its period to 9 apply to the closing prices (Close), set the color to red (optional) - this will be fast moving average (FMA).
3. Add another exponential moving average on the schedule, set its period to 14, apply to the closing prices (Close), set the color to blue (optional) - this will be a slow moving average (SMA).
4. 
   

Conditions of entry

• Buy when the FMA crosses the SMA below.
• Sell when the FMA crosses the SMA above.
• 
  

Conditions of Release

• Stop-loss for long positions is set at the lowest price level (Low) in the last bar before crossing. For short positions - at the level of the highest price (High) in the last bar before crossing.
• Take-profit depends on the stop-loss and should not be lower. I recommend setting take profit levels on a half or two stop-loss.
• If the response to the stop-loss or take profit there is a new crossing, close the position.
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Example:

As seen in the example, the input conditions are pretty clear and properly selected ratio of TP to the stop-loss, this strategy can be quite profitable.

Attention!

Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.

Forex Strategy

Forex trading can be profitable for a long time without following any trading strategy. To build your own trading strategy for forex or adapt existing strategies to your needs and your trader's style, a lot of time and effort. It is important to choose a strategy or system that is easy to follow with your schedule, and that can be successfully applied in your trading account balance. In this section you will find the Forex strategy, which are divided into three main categories:
Forex Strategy indicators
Forex strategies without indicators
The fundamental strategy of trading Forex

Illogical trade

Chart 1, CEFT

Alan Farley is a professional trader and mentor for over 16 years. He is author of the bestselling "master swing trading", columnist for RealMoney.com and editor of the newsletter "The Daily Swing Trade". Twisted logic can invent a very profitable trading strategies. For example, we learn to buy breakouts and sell up to breaks down, but some market players sometimes do the opposite.

They wait, when the movement bogged down, and then sell on a break up or buy at the break down. These players are illogical does not end there. They go on and buy, when an unsuccessful attempt to break through once again fails. Let's try to explore this way of thinking. Most of us are beaten track - we buy, because the forex market breaks through resistance, but kontrigroki know exactly how we react when our wonderful break up drops like a stone. Therefore, they suggest, where are our stop and come in short positions on the same price to earn money for our failure.

Exchange of shares in the Internet

The first stock exchange

The origins of the emergence of the stock market should look at when first joint-stock companies. These were Levanskaya, Baltic, East India Company, which appeared in the XVI-XVII centuries. With the creation of these societies began an active process of buying - selling shares in such countries as England and Holland. The oldest to date stock exchange is located in Amsterdam, she was nearly 400 years. By the beginning of the XIX century the leader of the stock market has become the London Stock Exchange.

Investing in gold and silver

If we consider the precious metals in terms of investment, neither of which investment income can not be considered. However, gold and silver recently brought no small profit to those who invested in it. Probably not worth talking about investing in precious metals.

Precious metals have always been a defensive asset, and they remain the same, besides this product. In recent years, the fiscal deficit of the developed capitalist countries like the United States and Great Britain only grew. Grew up in the meantime and precious metals. Those investors who have invested in precious metals, have not lost anything, be more correct to say so.

Forex trading through the bank

For the ordinary citizen, is currently widely available trade on the forex market. And if people decided to take up this exciting type of business, then he starts thinking about the technical side of this issue. How can we go out and start selling on the market Forex?

Among the great mass of promotional offers at the present time it should be noted that the types of access to the forex market a little bit different. The first way - is a direct access. Direct access to the forex market are banks. In the banks are sitting dealers who shall follow the Bank's purchase of a currency.

Advice to a beginning trader forex

If a person decided to do this business, as trade in financial markets Forex, the first thing it must be a person who does not need any advice. He should understand that the market comes to risk their money, their capital, with a view to profit. And it must be a reckless risk and the risk of deliberate.

If a person decided to become a trader forex, then he should understand that he would risk certain amount of money he spent on his training and he is its most likely lose. In addition, to become a successful trader, one of the top tips - a must lose in the Forex market large enough (but not ambitious course) the amount to develop a psychological resistance to change attitudes toward money. Only in this way can we talk about how to become a trader in the Forex market. Should not expect that there will be a trader without loss, all comes with experience, so get ready for the losses.

Currency speculation in the forex market

Speculation
Speculation is buying something, with a view to further sale of expensive extraction and thus profits. It would seem that it may be easier. However, the laws of the market impose a number of limitations, thanks to which economic activity is carried out.

Grocery stores and wholesale stores is essentially the same speculators, but they function as a distribution of goods for consumers. We can not buy that either the market, get up close and sell more. To do this you need a little work, at least to attract the buyer is to imagine that there is an advertising company.

Successful traders in the forex market

Should I trade forex? 
The network is a lot of sites devoted to topics of forex. Quite often you can find reports of people that forex is a scam that money in forex is not real and everything is made specifically to pull money from gullible people.

Here we must pay attention to statistics: a successful Forex traders from the crowd on the strength of 10%. A particularly successful ten percent of those only 1%.

It is not surprising that a large majority of people negatively responds to this form of earnings, as trading in financial markets, as they suffered heavy losses there. They argue that the market is unpredictable, and thus earnings in the market is in itself something like a lottery.

Investing in Forex

Investing in Forex is to receive income without bidding.

So, what are the business process in relation to the Forex market?

The process of investing - is the realization of embedding certain amount of money in a business project in order to earn an income. Investment funds may be made in a variety of projects, including in the forex market. Investing in Forex is different in that unlike other investments, they have little or no risk.

It is known that traders often need to "leverage." The role of creditors is played by dealers.

STOP and LIMIT orders

Now look at the useful trading tools to a certain extent, protect you from unexpected losses and to fix the planned profit.

This is - STOP and LIMIT. In the previously opened position at any time (during working hours of the market) you can put an indication to close it when the price reaches a specific value of the currency. For example, you open a position, hoping that the quotes will go up (on schedule). At the same time to protect yourself from significant losses by a significant movement of the currency down, especially in a situation where you have no control over, or you can lose control of the market, you bet STOP, ie specify the value price below its current value at which your position should be closed without further instruction. Similarly, if you are open down, you specify how much above its current value. In this case you should keep in mind that if a STOP will be too close to the current value, then the random bounce rates can close with a loss of open positions right, and if too far away - losses can be unreasonably high. In turn LIMIT - this is referred to your quote above which the position will be closed at a profit, ie quote by LIMIT - is always higher than the current value, if you're up, and below - if you're down.

BID and ASK prices

As you know, any transaction is made on a very definite and specific price, while in Table Quote Spread Sheet for each currency, there are three prices, for example:

Each of the Forex market participants in each particular transaction or act as sellers of certain currencies, or the buyer. In this case the seller offers the currency more expensive, for example, GBPUSD at 2.0254, and the buyer asks the currency is cheaper, for example, GBPUSD at 2.0250. Accordingly, the price of dealer called ASK, a bid price - BID. So, if you suspect that the GBPUSD will go up (in your chart GBPUSD curve goes up), you decide to buy a pound, while it is cheaper, in order to sell more. Buy (this is called BUY) can only be the seller who will offer it at a price ASK. When you sell a pound (an operation called a sales SELL), the buyer will offer for its price on BID (this is true for all currencies). Hence it obviously follows that if you open a position (the operation is called - OPEN), ie did BUY GBPUSD, and then want to close it (the operation called CLOSE), ie to sell just bought pounds, you can only do so at a loss, just as you would in any exchange office. Therefore, ensure that you receive income, the price of the currency should go in the direction you anticipated more than the difference between the BID and ASK. The third number is called LAST - the Forex market is the average of the last BID and ASK.

The purpose of trade

The purpose of trading in any market - to buy goods cheaper and sell dearer. Is no exception and the foreign exchange market - Forex. Goods in this market are the currencies of various countries. Like any other commodity currencies have their price.To perform calculations between partners located in different countries, international payments, speculators, etc., banks around the world to make the Forex market currency exchange operations. Depending on a variety of commercial, economic and other indicators, interest rates, central bank policies, time of day, preferences and expectations of stock market games, on a variety of reasons, and mutual quotation, that is, currency prices are in constant motion.
The task of a trader - to try to determine the direction of price changes and currency to buy foreign currency, the price of which increases, or sell the currency, the price of which falls and then, having made a reverse transaction, make a profit.

How to read quotes

Quotations are usually expressed in five-digit number. For example, USDJPY = 114.90 means that one U.S. dollar valued at 114.90 yen (ie, $ 1 are willing to pay so much yen to buy or sell). At the same time, GBPUSD = 2.0252 means that 1 British pound valued at 2.0252 U.S. dollars. In general, if the quotation XXXYYY = Z, then it means that one unit of XXX give Z units of YYY.

When the quote is changed, for example, USDJPY = 114.92 to USDJPY = 114.93 or GBPUSD = 2.0254 to 2.0255, they say that the price has changed by 1 point. From the above it follows that in this example, the yen fell by 1 point, and the pound rose by 1 point.