Easy Forex Strategies To Follow
Foreign exchange trading is very complex and the trader should have proper knowledge to survive. There are some strategies that make survival in the market easier for the traders and these strategies are easy to understand. In this article I will discuss about those easy forex strategies.
Trend following is one of the popular and easy forex trading strategies. It is very much effective and also very profitable, it is best for long term traders. The important aspects of this strategy are to be disciplined, patient and to follow money management rules. This strategy mainly includes following or monitoring the current market trend, the trader needs to recognize the trend of the market by studying the patterns which are created by different price actions and other economic events. Price charts, moving averages, bar charts and candlestick patterns can be used to identify the pattern of the market.
Range trading is based on the assumption, regardless the direction in which a currency travel and then returns to its point of origin. So the trades are based on price trading possibilities at the same level, and the trader benefits from those fluctuations of the price. The first step of range trading is to identify the resistance levels and the support and then use it to earn profits. The trader capitalizes from those situations where the currencies are traded in resistance levels and support levels.
Swing Trading is a type of range trading. Here the trader takes advantage from market indecisions and uses resistance and support lines as bottoms and tops. The aim is to identify the short term trends, ride them and then exit them when it ends. The success rate of this strategy depends on the trader like if the trader is able locate the short term trends then the strategy is beneficial.