Category: 3. Advance Strategies

Momentum trading

Momentum trading and momentum indicators are based on the idea that strong price movements in a particular direction are a good sign that a price trend will continue in that direction for some time.  Similarly, weakening movements indicate that a trend has lost strength and could be headed for...
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Range trading

Range trading is a simple and popular strategy based on the idea that prices often hold within a steady and predictable range for a given period of time. It’s most effective in markets with stable and predictable economies, and currencies that aren’t often subject to surprise news events. Range...
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Trend trading

Trend trading is another popular and common forex trading strategy. It’s also easy for beginners to understand and follow.  The technique involves identifying an upward or downward trend in a currency price movement and then choosing trade entry and exit points. These points are based on the positioning of...
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Fundamental analysis

In fundamental analysis, traders look at a country’s economic fundamentals to try to understand whether a currency is undervalued or overvalued. They also use the information to try to get a view on how its value is likely to move relative to another currency in future.  Fundamental analysis can...
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Carry trade

Carry trade is a type of forex trading whereby traders look to profit by taking advantage of interest rate differentials between countries. It is important to note that while popular, it can, however, be risky. This strategy works because currencies bought and held overnight will pay a trader the...
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Moving average crossover

Moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. That average can be taken over different periods of time – anything from 20 minutes, to three days, to 30 weeks or any other time period a trader...
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Breakout trading

Breakout trading is one of the simplest forex trading styles, making it a good choice for beginners. Before we look at how it works, let’s define the term “breakout”. Put simply, a “breakout” is any price movement outside a defined support or resistance area. Breakouts can occur when prices...
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Number of trading opportunities

When choosing your strategy, you should answer the question: how frequently do I want to open positions? If you are looking to open a higher number of positions then you should focus on a scalping trading strategy.  On the other hand, traders that tend to spend more time and...
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Time frame

Choosing a time frame that suits your trading style is very important. For a trader, there’s a huge difference between trading on a 15-min chart and a weekly chart. If you are leaning more towards becoming a scalper, a trader that aims to benefit from smaller market moves, then...
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Timing

The market will get volatile when it opens each day and while experienced day traders may be able to read the patterns and profit, you should bide your time. So hold back for the first 15 minutes, you’ve still got hours ahead....
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