Forex Strategy for Beginner

This article really be useful for beginning traders who have yet to determine what strategies will be used. The strategy itself depends on the trader's own personality - some traders prefer a smaller timeframe and others choose the large, slow-moving instruments and some other fast moving, some traders feel more comfortable with 1-2 trades per week, others have dozens trades a day, etc.

Although there are many different trading strategies in financial markets, but we will try to briefly describe some of the most popular strategy, which can be modified in countless ways according to personal preferences.

Support dan resistance

Traders set a flat market with support and resistance levels are clear. Trading in between the price range until a breakout occurs. Stop loss is placed outside the channel.

Timeframe: All, preferably from 1H.
Type: no trend (flat)

Breakouts

When the price is at a certain range for a while, sooner or later we're looking at a breakout downward or upward. Usually breakout very fast and volatile, making it possible to open trade in the same direction. Stop orders are usually located below the support line or above the resistance line but not too close to avoid the movement of ordinary and average dilation. To be sure, you should wait until at least one price bar close below / above the line of the flat price range. 

Timeframe: All, preferably from 1H. 

Type: no trend (flat)

Moving Average

Maybe this is one of the most popular strategies. Please note that the trader will get more singal trading on a smaller time frame which then puts more emotional distress. Each instrument can be selected and each period can be set to a moving average. Back-testing in history (at least 1-year period) is needed to determine whether the selected parameters are correct. Stop loss is usually specified above / below the moving average but not too close. 

Timeframe: All, preferably from 1H. 

Type: Targeted (average)

Oscillators

Oscillator measures the strengths / weaknesses of the chosen instrument. Oscillator works well for a flat market when there is no trend going. Traders can select the instrument and indicator parameters according to individual needs and the results of back-testing. Oscillator shows a good entry point whenever the market is oversold or overbought. We recommend using a stop loss fixed when working with oscillators in order to avoid greater losses if the breakout should occur. 

Timeframe: All, preferably from 4H. 

Type: no trend (flat)

Technical Formation and Japanese Candle

History tend to repeat themselves so well on the charts as well as the formation of a visual combination of price-bar. A list of all possible combinations is not a purpose of this topic, we only give you an idea of where a person can start. There are many visual formations that can be used: "triangle", "flag", "head and shoulders" etc and countless combinations of price-bar consisting of one or a few candles. 

Timeframe: All, preferably from 1H. 

Type: two-way and flat

We hope this topic can help you to understand a little more about trading and collecting some ideas for developing your own strategy that suits you. Traders can combine different methods or even be able to develop their own indicators and trading robots, because there is no limit in creating a wide range of variations.

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