Best Forex Strategy-How Can Forex Traders Trade the Forex Market Better?

Last time I mentioned how Forex traders can trade both the trend and range Forex market using just one single Forex strategy. Normally there are some things on which Forex traders have to fix a watchful eye.

1.In fast moving market situations (when the signal confirm after one or two long candles) wait till the price bounce back to correctional level of % 23 Fibo and then enter the trade.

2. Most reliable signal confirms when the RSI running above / below 50 line when you go for a Long / Short.

3. A break of RSI Trend Line confirms when the second candle opens on the suggested direction.

4.Don’t ever take the trade unless the second bar opens Above / Below MACD zero line for a Long / Short trade while the MACD signal line will just give you an in advance alert to be ready for the trade.

5. Once again, the crossover of MACD Value and the Signal Line will warn of a potential trade but don’t ever take it unless you have your own reasonable reasons to do that.

6. Don’t ever take second trade of LONG / SHORT in line with the first trade order type unless a FRESH signal of aforementioned conditions confirm to trade.

8. Don’t ever risk more than 5% of your account balance unless you have your reasonable money management rules that suite you.

9. Avoid the side markets by observing a narrowed Bollinger Bands or flat RSI line.

10. Place the Stop Loss 10 pips above / below of bearish / bullish Parabolic SAR first appeared dot or 10 pips Above / Below the current Resistance (R2) / (S2) Support levels.

11. Most of the false signals come when you trade against the major trend of the market. To know how to define the major trend use bigger time frame like daily or even weekly chart and apply the same setup on that chart to know what is probably the right direction of the market. Sometimes when the price touch the 55 EMA line react as a support or resistance level and at the same time you may have a trading signal against this fact. In this case you are probably against the major trend.

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Best Forex Strategy-How to Trade both Trend and Range Forex Market

The fact is, it is not honestly easy to make money at the end of a year through using this trading set up or the other ones, because as I said already, it is impossible for a trader to predict every next action of the market. The reasons behind this saying, would be “no one had 100 % wining trades in such a market” and the other reason that I personally refer to when I think I’m OK enough in trading is “when I see the huge currency market screen on my laptop, I really see nothing while the real huge market is hidden behind the screen and you don’t actually know what’s going to happen next with unexpected Iraqi, Iranian, Chinese or Mexican gulf storms cases next”. So all I am trying to emphasize is not forget to that a real trader must know as much as he/she can from all market movers first and always has an eye on possibilities that could easily turn to a nightmare. Those possibilities often come up with a 300 pips bar or a scary gap just against your technically approved trade.

Well, whether you have a magic expert indicator or not, with no doubt you must combine at least two different ways or indicators to produce a signal which is reliable for both trendy and range market situations. Briefly I show you how and which ones I prefer to use.

How to Draw the RSI trend line?

You simply have to connect at least two turn points of RSI value line which can interpret into drawing a line which connect the last value line top (the last value line Top is the one that formed much closer to your current signal than the others and match better to correction on the price chart) to next line top with is normally lower than the first top in a short trade and higher than the first top in a Long trade.

The Top of RSI value line is the hump that formed because of a correction (Fibo ratios for correctional pullbacks), so try to filter the useless RSI Tops with the real chart formation as you may get it wrong when a hump has formed on the RSI while there is no correction on the price chart.

Also, if you realized that you actually took the wrong Top for the trade and you already entered the market, please and for god sake, exit the trade and open another one on the true direction of the market.

There is something you need to pay attention, too. Therefore, stay with me!

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Best Forex Strategy-How to Be Successful Part-Time Forex Traders

Actually there are very few Forex traders available all the time in the Forex market. As part time Forex traders, it is reasonable that they would worry about missing some tiny movements of the Forex market leading to unnecessary losses. Then what the best Forex strategies that can help part time traders to be successful?

Assuming you cannot even trade for an entire hour or for regular increments during the day, you can still trade the Forex market. Since you cannot watch the market during the day, the following strategies may be implemented so you can be a successful part-time Forex trader:

Best Forex Strategy No.1: Take fewer positions and hold for days.

After studying the market and narrowing down particular chosen currency pairs, you can take only a few positions and hold these positions for a longer period of time. It is critical that you understand the drivers of your currency pairs and have taken the time to really understand your market. Another wise strategy is to put in stop-loss orders with all your trades to minimize any losses if the market moves against you.

Best Forex Strategy No.2: Look at long-term trends.

Instead of looking at hourly or even four-hour charts, you may want to look at the trends for a day or week. This will allow you to trade while looking at your computer only once a day.

Best Forex Strategy No.3: Set up trading orders.

Setting limit, stop-loss or other entry/exit orders can ensure you do not miss opportunities to enter or exit positions. Most trading platforms allow you to set up these orders with no additional fees.

Best Forex Strategy No.4: Use technology!

Set up auto alerts to your mobile phone or email to keep you informed while you are not actively trading.

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