The number of traders who are making profits in FX is increasing with every passing phase. Witnessing their constant growth is kind of inspiring. It makes one wonder whether it is actually that easy! Well, with due honesty, the success of a trader is largely dependent on the strategy he/she employs. Without a sound profit taking strategy Forex, procuring profits will be very difficult.
Perhaps, this is why 7 out of 10 traders fail to make 3 consecutively successful trades consistently. This brings forth the questions –
Are you looking for a sound trading strategy and also some tips to make money? Or are you seeking for that Exclusive Mantra for success?
Read the post which plummets.
Simple Yet Effective Strategies to Gander At:
Option 1: MA Crossover Strategy:
It is a very popular trading strategy which traders make use of. The MA crossover is responsive to all notable trading platforms and its indicators are easily customizable as well. This is primarily a day trading strategy and involves using 3 Moving Average lines.
One line is set at 20 periods; the second is at 60 periods while the final one is at 100 periods. Its 1st period is known as the Fast MA, 2nd is Slow MA whereas last is the Trend line indicator.
When to Buy and Sell?
When the fast MA crosses slower MA via an upward movement, it generates a BUY signal. On the contrary, when fast MA moves pass slow MA in a downward movement, that is when the SELL signal occurs.
Knowing when the price is Trending:
When using this profit taking strategy Forex, if one finds the price bar staying constantly over or under the 100 periods mark, that is a sign of a strong market trend taking place. One should allow one’s traders to run.
Due to its simplicity, many experts even consider this as the best take profit strategy forex around. Whether it’s the best or not is subjective but it sure does help bring stable profits if used properly.
Option 2: The Heikin Ashi Strategy:
This simple but lucrative strategy resembles the candlestick chart pattern, except for its mode of gauging and plotting the candles. The information for plotting the candles depends on information taken from the previous candle.
How to Trade With It?
When plotting it on the trading chart, one will find the bullish trends marked in green while the bearish ones in red.
For the Short trade set-up
If one finds the price showing 2 successive red candles after consecutive green candles, it means a reversal is on the cards. Hence, going short is the more adequate option.
Long Trade Set-ups
When working with this profit taking strategy Forex, one will find repetitive green candles occurring after a series of red ones. This implies that there is soon going to be a trend reversal due to exhaustion of a downtrend. In such cases, it’s the best to go for Long positions.
(A Note – When using this strategy, traders may find that the candle information may not be conclusive enough. In such instances, one has to filter the absurd signals and enhance its functionality. )
Do try out these strategies with demo trading. That way, it will be clear as to which profit taking strategy Forex is more apt for using.
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.