Have you ever thought about the top Forex trading strategies you can use in the coming year? What strategies are considered the most profitable and useful for traders?
Whether you have just stepped into the world of Forex or have an enviable experience in this business, you must understand the strategies that could improve your overall experience and expect higher profits.
We will present the top 3 Forex cfd trading strategies that are ideal in the coming period and that you can try. Here are the Forex strategies we are talking about!
Pin bar trading strategy
Pin bar trading strategy represents the Forex strategy which displays a reversal in the market. It’s undoubtedly one of the most useful tools for predicting near-term and long-term price directions. The main goal of this strategy is to mark huge turning points in the Forex markets. These turning points are usually tops and bottoms.
This strategy is famous for its pin bar candlestick, which refers to a particular Japanese candle type. It is quite easy to identify on the chart since it has a distinct shape. The pin bar candlestick is just a part of a Price Action method. To trade with the pin bar trading strategy, it’s essential to:
- Measure the pin bar length from the lowest to the highest point.
- Once the price breaks to the lowest point, it’s essential to go short.
- In the bearish pin bar, it’s crucial to set a stop loss order at the highest point of it.
- At least twice, project the pin bar length below the entry point.
Scalping represents the short-term trading strategy whose main goal is to enable profits from small movements in price within the foreign exchange market. In this particular strategy, scalpers purchase and sell forex pairs while holding the position for a few seconds or minutes.
They can repeat the process quickly to achieve persistent returns in just 24 hours. The best way to achieve all this is to take advantage of price fluctuations.
The best currency pairs for scalping strategies are the major ones with the highest trading volume, such as EUR/USD, USD/GBP, AUD/GBP, etc.
To successfully do scalping in Forex, it is essential to follow these steps:
- Open a brokerage account.
- Choose one of the major currency pairs for trading.
- Get informed about all the trading costs and find competitive spreads and low-margin rates. One of the most important parts of trading is risk-management controls.
Trend trading represents the strategy in which prices tend to move in a particular direction over time. They can be some of the following ones:
- Long term
- Short term
The biggest success with the Forex market investments is in the ability of a trader to identify trends and position himself for profitable entry and exit points. Remember that trend refers to a tendency to use simple price action. The uptrend represents higher highs and higher lows, while downtrend includes lower lows.
These strategies are useful and profitable if used wisely and patiently. Choose one, start small, and play until you upload what you find most useful and best for you! Good luck with whatever strategy you choose!