Firstly consistent earning in forex requires dedication and Forex Trading strategies. Also for a better and flawless transaction, many techniques employed in the forex market, and these methods assist traders in identifying distinct consistent earnings in the forex market. In the forex market, a good trading strategy is critical if you want to earn consistent gains, and we will examine the greatest forex strategy for consistent profits today.
Forex Trading Strategies that will help you to make consistent money are given here:
Forex Trading Strategies:
1. The Breakout Strategy for London
The primary premise of this method is that the day’s direction on numerous trading pairs is generally decided at the start of the London session (8 a.m. British Summer Time). To trade this method, examine the 1 HR chart of the pair you want to trade and make a note of the day’s high and low (from the open of the Asian session to the start of the London session).
Wait for an hourly candle to close above the current high before the London session opens for a buy trade, and for a sell trade, wait for an hourly candle to finish below the existing low. Your Stop Loss limit for a buy trade should be the day’s low, and vice versa for a sell transaction. At least two times the Stop Loss amount should be used as the Take Profit level.
2. The European Medicines Agency’s (EMA) Crossover Strategy
In forex trading, the Exponential Moving Average (EMA) is one of the most useful technical indicators. With just one glance, you can receive a directional bias on any chart. EMA crossover techniques use two EMAs with differing values (lower and higher) to take a market position dependent on the direction of the crossing.
5 and 7, 10 and 20 (the combination utilised in our sample image), and 15 and 30 are other typical EMA combinations for this method.
If the lower value EMA crosses the higher value option from top to bottom, you should make a sell trade. It indicates a downhill trend (shown in the image above). It indicates an upward trend when the lower value EMA crosses the higher value version from the bottom.
The Stop Loss limit on a purchase transaction should be set at the most recent low. It should be at the most recent high in a sell trade. At least two times the Stop Loss Value should be the Take Profit level. Part followers of this popular trend following method retain their positions until they see an opposite crossover, but this raises the risk of losing some or all of your earnings if the market reverses abruptly.
3. Gann Strategy of Trend Following
To determine the market’s next likely direction, the Gann trend following approach employs a technical indicator based on William Delbert Gann’s angles. This approach can necessitate the installation of a technical indicator on your trading platform. Many Gann-related indicators are accessible for free in Metatrader 4.
The presence of a yellow ribbon on the Gann indicator indicates that the market has begun a decline. The blue ribbon denotes a positive trend. You should aim to enter a position shortly after the candle that prompted the colour switch has closed. The three arrows indicate the entering candles.
Some of the trend shifts, as seen on the chart, were false dawns that would have resulted in a loss trade. The positive transactions, on the other hand, were extremely profitable. This is why, when utilising this approach, you must be careful with your Stop Loss and Take Profit restrictions.
4. Strategy for Support and Resistance
This is a powerful range trading method that tries to forecast where the market will turn next. The theory is that at a resistance level, the market would turn bearish, and at a support level, the market will turn bullish. This means that you enter a sell trade at a resistance level and a buy transaction at a support level. There are a variety of techniques available for determining support and resistance levels. Bollinger Bands, Pivot Points, Fibonacci Ratios, and other indicators are among the alternatives. Select a method and conduct significant study on it.
Depending on the direction of the transaction, many users of this approach set a Stop Loss limit at the low or high of the signal candle (the initial candle that initiated the switch). They also trade without a set Take Profit level, instead following profits.
At the top of the range (resistance) and bottom of the range (support), you can observe how price reacted (support).
Your profit objective is the support level if you sell at resistance, and vice versa. The Stop Loss should be 10-20 pips away from the most recent high or low before you enter the market.
5. Pinbar Strategy
To forecast future price movement, the pinbar approach employs one aspect of Japanese Candlesticks. According to the theory, a pinbar indicates that the market is going to shift direction, much like an arrow formed by market players’ actions. It is frequently used in conjunction with other tactics such as Support and Resistance to increase the likelihood of success. The red arrow in the chart above indicates a pinbar that developed exactly on a support zone. After that, the market went on a little bullish run.
For a strong risk-to-reward ratio, the profit objective when utilising such tactics might be the next support or resistance zone, or multiples of your Stop Loss value. For buy or sell transactions, the Stop Loss limit should be positioned below or above the pinbar.
Consistent profit is a word that might seem not so possible in a trading. By bring some strategies and techniques into your trading will help you to maintain consistent money.
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