Double Red Strategy

This is a short-term strategy based on price action and resistance. The trade is planned on a 5-minute chart. How to profit? Choose an asset and watch the market until you see the first red bar. Then wait for a second red bar. If the second red bar closes lower than the first red bar, then it’s a win. Usually, what happens is that the third bar will go even lower than the second bar. This is the point where you should open a short position. A few more tips that are great to follow in your forex journey include:

  • Experts advise against risking more than 1/6 of your free trading capital, especially when confidence is lacking.
  • Trends tend to develop quickly as the number of traders following them increase.
  • Stick to your strategy
  • Close unsuccessful position

In the forex market, $5.3 trillion is traded daily, making it the largest and most liquid market in the world – and traders can trade with small amounts such as $100. Get Started!         

False Breakout Trading Strategy

A false break occurs when price looks to breakout of a support or resistance level, but snaps back in the other direction, false breaking a large portion of the market out.  When prices begin to breakout higher a large portion of the market starts to look for the resistance to break and will enter long trades, often setting their stop loss on the other side of the resistance.

  • Can be traded on many time frames
  • Can be used in many markets and pairs
  • Can be traded with many triggers as the major entry
  • Often entering when the majority of the market has been stopped out entering in the wrong direction

Spread / Pair Trading Strategy

Pair trading (spread trading) is the simultaneous buying and selling of two financial instruments which relate to each other. The difference of the price changes of these two instruments makes the trading profit or loss.   Spread trading can be of two types:

  • Intra-market: traders can open long and short positions on the same underlying asset
  • Inter-commodity spreads: Traders can open long and short positions on different market assets which are related to each other, like gold and silver.