Before you consider the high probability trading strategies you can use, you have to believe that no technique is perfect. The best traders have learned to use a different strategy for the tre
nd they see in the market. What works for another may not necessarily work for you. Apart from that, you have to know that profit is not a guarantee. In the financial world where money is always awake, drastic changes can happen any time. You can always go where money is offering the best opportunity but in foreign exchange
trading, playing with chance means readiness to let your position go or not. Here are a few s
trategies that may increase successful trading.
Breakouts: Currency rates fluctuate at certain price points each day. Since fluctuations can either be caused by rates going up or d
own at specific prices, it prompts a range to be created. The range from a previous day can be widened or narrowed depending on market conditions. In order for a breakout to be determined, a currency rate has to move beyond the highest limit on the previous day. This trend should at least occur in two successive days of trading. If you see that happening, you can open a trading position on the third day and buy the currency when it exceeds the highest rate on the second day. Breakouts can be determined through chart analysis and is by far, the simplest among the high probability trading strategies.
Trading with time: Some traders do not recommend going for one-hour charts. They see the higher chart analysis as one of the high probability trading strategies. In this case, what you can do is to employ technical analysis over a pair of currency and wait for two exponential moving averages (EMAs) to meet in the same direction along the four-hour chart. You can then enter a trading position and through a two-point exit, close half when profit is made and leave the other half open until the highest rate peaks.
Trend Pullbacks: The Fibonacci indicator has gained reputation for accuracy in foreign exchange trading. Because most traders agree on its favorable effect in revenues, it is currently recommended as one of the high profitability trading strategies. The Fibonacci indicator uses trends. Trends are rate indicators that move to a specific direction over time. Trading is placed in view of that direction. The Fibonacci indicator plots lines where a currency records highs and lows. These points are marked because these are where potential reversals may happen. For a downtrend, the high points are connected. For an uptrend, the low points are connected. If a currency rate reverts to a trend line, and that the direction is near the Fibonacci indicator, it is time to open a trading position in accordance to that direction.
The high profitability strategies mentioned above seem simple but if you are to be a trader, you will need patience in being updated with the trends. Profit does not come overnight. It takes time and patience to be trade – proficient.