The currency market as people know is one of the most volatile trading arenas currently existing on the globe. With cash volumes raging up to the $5 trillion mark each day, this FX market offers a lucrative opportunity for potential as well as veteran investors to make a profit. However, a profitable currency trade depends on one intricate factor – strategies. In fact, by opting for the best Forex strategies free, investors can ponder on the existing market leverage wisely.
So, this article throws some light on a few Forex strategies and situations optimum for them.
Exploiting the pivot point
The pivot point investments in Forex depends on Fibonacci retracements. By plotting a graph comprising of daily pivot points, investors can analyze the current market trends. Experts recommend this approach as one of the most profitable strategies owing to chances of exploiting exponential market volatilities.
One can embrace pivot point through three approaches,
Camarilla Pivot Point:
While calculating resistance and support levels, investors take into account previous closing values providing an average range.
Woodie Pivot Point:
This technique uses historical data and performs statistical analysis to calculate the market trend of support and resistance levels.
Fibonacci Pivot point:
As discussed above, this is the most widely used approach involving plotting of a graph to decipher floor and ceiling currency values.
Trading with Bollinger Bands
If you are a newbie to the currency market, then one can consider Bollinger bands as the best strategy for Forex. Bollinger bands make use of three primary lines. While the upper and lower bounds define corresponding currency price limits, the third marker traces a currency pair to its present fluctuations.
Its primary motive is to measure a standard deviation and invest in that deflection. For instance, a currency is trading in USD/EUR which is currently running at 1.3005. Floor and ceiling values clock at 1.3002 and ceiling value is at 1.3008.
Three markers point to three distinct price action making it one of the best Forex strategies free.
Duration trades (A knowhow)
One can classify these trades depending on the period for which they are continuing. This includes,
While day trading refers to opening your position at a session’s beginning and closing with the end of the session; carry trading involves trades that carry on for multiple days. You may consider either of them as the best free Forex trading strategy depending on your choice of investment.
Scalping, on the other hand, involves exploiting benefits on the extremely short duration of trades. This is why scalpers look to invest in multiple positions on a single instance to ensure a comprehensive overall profit margin.
Summing up the above information one can say that, while a multitude of best Forex strategies free exists in the market, contemplating the right one depends entirely on one’s preference and discretion. However, before you initiate a trade, do not forget to try your hand at a demo account. It will safeguard your balance against unprecedented losses.
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.