Forex Trading Strategies

Forex traders use this simple strategy to determine which forex trading plan is best for them based on their trading style. The 5-3-1 strategy is particularly beneficial for new traders who might feel overwhelmed by the number of available currency pairs and 24/7 trading hours. These 5, 3, and 1 numbers represent the following We […]

In a market where ticker tapes never stand still, scalpers profit from small movements. For years, day traders relied on Level 2 bid/ask screens to detect supply and demand imbalances, which differ from the average person’s National Best Bid/Ask Price (NBBO). A profit or loss was booked shortly after the spread returned to balanced conditions

Traders use indicators such as parabolic SAR and parabolic stop and reverse primarily to estimate a given asset’s short-term momentum in the future. A trader can easily use this indicator, developed by the famous technician J Welles Wilder, Jr, to determine where to place stop orders within a trading strategy. (An indicator like this is

In backtesting, a strategy or concept is tested for past profitability manually or systematically. To determine if a trading strategy shows promise and profitability in several markets, a trader can backtest a strategy manually or with backtesting software. This article will focus on manual backtesting since backtesting does not always require software and can be

When you know what you are looking for, you can use harmonic patterns to spot new trading opportunities and pricing trends. Check out this article to learn about the top harmonic patterns and how to apply them effectively. What are harmonic patterns? The harmonic pattern is a chart pattern that is part of a trading

The art of the Fibonacci Forex trading strategy refers to ‘Mastering the time and price advantage’. To begin with, it is always a good idea to know some background information regarding where this increasingly popular trading method originates. First introduced to the West by Leonardo Pisano Bogollo in the 13th century, the Fibonacci sequence begins

A price action trader makes trading decisions based on price movements rather than technical indicators. Traders have access to a wide range of tools. This article offers a detailed description of this type of trade and some great beginner trading tools. What is price action trading? Some traders make decisions based on the price movements

A wedge pattern can indicate either a bullish or a bearish price reversal. In any case, a pattern like this has three characteristics in common: first, converging trend lines; second, declining volume during the pattern; third, a breakout from a trend line. The wedge pattern comes in two forms: a rising wedge (which indicates a

The United States Bureau of Labor Statistics (BLS) releases the Non-Farm Payroll (NFP) data for the previous month on the first Friday of every month. Traders can determine their trading strategy according to their NFP strategy, making this day an important day in the financial markets. Non-farm payroll report data can be very challenging to