Price Channel Trading Strategy

Price Channels Explained

Channel trading is one of the most popular types of trading strategies in the forex currency market. A price channel is a pair of parallel lines that form a chart pattern for trading instruments such as forex currency pairs, stocks or commodities. Channels may be horizontal, ascending or descending. Price channels can quickly and easily be marked on charts to find potential areas where price may breakout or reverse. When the price passes through and stays through a channel representing support or resistance, the trend is said to be broken and there is a “breakout”. If price bounces from the …READ MORE

Forex Reversal Strategy

Forex Reversal Strategy

What is a Forex Reversal Strategy? Forex reversal strategies are when a forex trader will look to buy or sell currency pairs when price is about to change direction. Those who trade with a reversal strategy will often look to enter a position after a price pullback into a trend followed by a correction. They may also look to enter reversals from highs and lows within a range bound market, buying at the bottom of a range and selling at the top of the range. One the riskier methods of trading reversals is to try and pick the top and …READ MORE

Forex Range Trading Strategy

Forex Range Trading Strategy

What is a Forex Range Trading Strategy? Forex range trading strategies are when a forex trader will look to buy or sell currency pairs when price is stuck within a range. They would look to buy at the bottom of a range and sell at the top of the range. Some traders would exclusively trade ranging markets whereas other would combine a forex range strategy with a forex trend trading strategy and forex breakout strategy, depending on the current market conditions. The consolidation of price within a range can occur over the short, mid or long-term. Whilst the longer a …READ MORE

Forex Trend Trading Strategy

Forex Trend Trading Strategy

What is a Forex Trend Trading Strategy? Forex trend trading strategies are when a forex trader will look to buy or sell currency pairs when price is clearly moving in a particular direction. Forex trend trading is amongst one of the most popular and well-respected methods of trading forex online, as the old saying goes, “the trend is your friend”. The forex market can be analyzed for up trends and down trends by using technical indicators such as the moving average and parabolic SAR. Other indicators such as the ADX and MACD can be used to gauge the strength of …READ MORE

Forex Breakout Strategy

Forex Breakout Strategy

What is a Forex Breakout Strategy? Forex breakout strategies are when a forex trader will look to buy or sell currency pairs when the price breaks through key price levels, mainly support and resistance. The market can tend to move significantly when price breaches important price levels which makes breakout trading a popular choice for investors of all experience levels. Those who are trading with a forex breakout strategy tend to use the 1-hour chart time frames and above as the support and resistance levels tend to have more importance, primarily due to the fact they are over a longer …READ MORE

What Is Forex Scalping

Forex Scalping Explained

What is a Forex Scalping Strategy? Forex scalping is a trading strategy where forex traders will buy or sell currency pairs over a short period of time in order to try and make a profit from the difference in prices from when they enter and exit their position. Forex scalpers usually place trades throughout the day on lower term chart time frames such as the 1-minute, 5-minute and 15-minute charts. Scalping can involve being in positions from just a few seconds to minutes. Forex scalping looks to compound small gains from frequent trades compared to more long term trading strategies …READ MORE

What Is Forex Day Trading

Forex Day Trading Explained

What is a Forex Day Trading Strategy? Forex day trading is a type of short-term trading where traders open positions and close them all within the same day. They may make one or several trades within a day, but the idea to get in and get out of the market before the end of the day. Forex day trading works best with currency pairs with high liquidity and volatility. Trading styles vary from person to person. Forex day trading is not a good fit for everyone. What are the Advantages of Forex Day Trading? Forex day trading requires almost constant …READ MORE

How To Trade Price Action With Divergence

The Moving Average Convergence and Divergence oscillator (MACD) was first introduced by Gerald Appealin 1979. Even though the concept and construct behind the MACD is straight forward, it is considered one of the most effective momentum indicators available. The Moving Average Convergence/Divergence Technical Indicator is essentially the difference between a 26-period and 12-period Exponential Moving Average (EMA). To clearly show buy/sell opportunities, a so-called signal line (9-period indicators` moving average) is plotted on the MACD chart. Consequently, the indicator comprises a MACD line, Signal line and MACD Histogram. MACD Line: Is the difference between an instrument’s 26-day and 12-day exponential …READ MORE

What Is Forex Swing Trading

Forex Swing Trading Explained

What is Forex Swing Trading? Forex swing trading is a style of trading that aims to capture profits in the Forex market by holding trades for a period of time ranging from over a day to several days or weeks. This is distinguished from the day trader who seeks to get in and out of the market before the end of the day. It also differs from long-term traders who hold on to positions for periods ranging from several weeks to months or a year. What are the Advantages of Forex Swing Trading? Some advantages of Forex swing trading include: …READ MORE