There are many types of Forex trading strategies which have been invented since the Forex trading started. Some depend on the technical tools like charts and numbers while others rely upon the fundamental knowledge of the markets depending on the current events affecting the FX market. We will describe some popular Forex strategies here which can help the XFR Financial Ltd traders gain an edge in the field of Forex trading.
Support and Resistance level strategy
Whether you are a beginner or an expert in the field of Forex trading, looking on support and resistance levels in Forex charts is beneficial. This strategy serves as a baseline for the analysis of your trading activities. The support and resistance levels are easily identified through the naked eyes of an expert trader since they are directly visible to you.
Fibonacci indicator trading strategy
This is one of the most popular Forex trading strategies and is named after a famous Italian mathematician. This is a medium as well as long term strategy. It uses the fundamental that the market moves in waves and this indicator takes the advantage of this fact. Fibonacci ratios help in identifying the potential of resistance and support levels on financial charts. The most common Fibonacci ratios are 31.8, 50 and 61.8 percent.
Multiple time frame Forex trading strategies at XFR Financial Ltd
This is a great way to perform the analysis of currency pair trends by analyzing it over different time frames. By doing the analysis on different time frames like 15 m chart, 30 m chart or 5 hr charts the trends on bigger and smaller scale can be spotted. XFR Financial Ltd recommends to perform analysis on 3-4 time frames only although there is no such limit on the number of timeframes.
This is a low risk strategy and also allows traders to make good profits. A number of beginners apply this technique to make big profits. Scalping needs a great amount of patience and strictness on the part of a Forex trader. Emotional trading has to be completely left away in this case because it encourages the trader to take wrong and compulsive decisions.
Candlestick Forex trading technique
The candlestick charts are the most popular chart types these days and they ate constantly used by many retailers as well as big investors. The other chart types do not tell the story of past price action which is told beautifully by the Candlestick charts. Therefore candlestick charts are used more efficiently than the other charts. These charts work great in volatile times but even in the non volatile times these charts can be used well with a combination with one or two other indicators.
Limiting risks and losses is much desired in Forex traders and all types of traders whether small or big try to find ways to do so when they trade at XFR Financial Ltd. Hedging is one of the best Forex trading strategies to limit the risks of losses. Many large institutions have made it mandatory to use in their trading tactics.