With a daily turnover of $5.1 trillion, Forex is one of the largest trading ventures around. This is a market which is brimming with numerous profit-making opportunities, and that is what lures in so many investors. Considering the size and popularity of this market, traders will also find a litany of daily Forex strategies that work in tandem with different indicators. However, the trick is to find a strategy which works as only then will stable profits come about.
To help traders find that all important daily chart trading strategy, here are some good options to look into.
50 Day Moving Average:
Traders who have been in the market for a considerable period of time will regard this as one of the popular daily Forex strategies that work. These are strategies which aid in trend reversals and setting the Buying and Selling trade positions with the help of trading charts.
With this strategy, traders can easily identify 2 variants namely Support and Resistance occurring at the time of a trading session Furthermore the 50 Day Moving Average also aids in dividing the line between the profitable and risky trading entries. If more trades are seemed above this pivotal line, it means the market has a better possibility of improved market sentiment.
Traders can also use 50 Day Moving Average to determine Entry and exit points. For those wanting a reliable daily strategy to trade with, this goes as a very good option for sure.
Relative Strength Index or RSI:
For examining the market momentum, the Relative Strength Index works in in correlation with market rate fluctuations. The price range is from 0-100 with the crucial points being 70 which denotes the OverBought and 30 which implies an OverSold position.
This is also a very common indicator which includes in most of the daily Forex strategies that work. It is also very easy to use, and even novice traders can identify the possible currency rate changes and set themselves for a potential market reversal in the market.
In a trending market, the Fibonacci Retracement happens to be the most reliable Forex day strategy for all traders. The rudimentary idea which this strategy conveys is that –
Trades should look to go Long when the Fibonacci Support Retracement seems to be moving in an upward direction.
Contrarily, traders ought to go Short when the retracement of the Fibonacci Resistance is moving in a downward direction.
Considering the massive focus in Support/Resistant regions, traders, using this, can interpret the profit levels when doing a market analysis.
These are some crucial indicators which one should look to incorporate into their Forex day strategy. Each of these technical tools is easy to interpret and effective in yielding results on a consistent basis.
A word of advice would be to demo trade, before jumping into the FX arcade with both feet; traders must look to test out each of them. Best daily Forex strategies that work has all underwent backtesting in their initial stages. Newbies should look to do the same. So start doing it and keep trading Forex.
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.