There are no surprises that the market is stacked with daily Forex trading strategies. Despite this, many traders keep searching for a strategy that would fit their needs adequately.
Experts always believe that for a new participant, it is always easy to become a profitable trader than one who has been trading unsuccessfully for months or years. The reason being, a new trader has less chances of developing a bad trading habit. However, there is a fine line between the two and that is why, it is paramount to find a strategy which works perfectly for their trading requirements.
Again, experts also point out using daily chart FX trading strategy for newbies. Here’s a post explaining that in details.
The Daily Chart FX Trading Approach:
Among the best daily Forex strategy, this approach using trading charts is surely a reliable one to use. It is very simple and will fit into the trading lifestyle of any trader. For its set up, one will need to use Stochastic indicator in its default setting of 5, 3, 3 and the Fibonacci Retracement Tool. Candlestick is also needed for this chart set up and traders particularly got to have more profound knowledge about reverse candlestick.
The Rudimentary Rules:
To use this so called best daily Forex strategy, traders will need to keep in mind these following rules.
If a FX currency pair is present in a downtrend, one should use it to measure the market trend- particularly any sort of brakes in the trend.
Once a High takes place, traders should use the Fibonacci Retracement levels. Plus, one should also ensure the current price takes out the previous high as that is the point when the new uptrend will stage.
Then simply draw back the Fibonacci Retracement level to 61.8% and include the Reversal Candlestick.
If the Stochastic appears in an Oversold zone, it implies a valid trade. Simply place the BUY STOP Trading Order right at the reversal’s High.
Benefits of Using this Strategy:
Among all the notable daily Forex trading strategies, this one is quite fruitful and has the potential to bring around 100 pips in a single day (if one does everything properly).
With this strategy, one doesn’t need to worry about sudden price fluctuations or any random news releases which will hamper trading plans.
The charts present more clarity in information and ensure effective market bias. This makes way for consistent rewards.
Another good benefit of this trading strategy is that it lessens one’s trading frequency. Overtrading is never suggestive to traders and with it; one will learn to control their excessive trading urges.
Its Prior Preparation:
Just because this stands as among the easier daily Forex trading strategies, it doesn’t mean that it will bring success right from the outset. Traders will still need to get familiar with this method and the best way to do that would be through a demo account. It is one account where they examine this very aspect of the strategy without worries of losing money. Furthermore, it’s also an opportunity to check the efficiency of the strategy via back testing! As a demo account, one should sign up for a MT4 account and start putting this strategy through its mettle.
So, try it out today!
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.