Categories
2. Intermediate Strategies

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!         

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