Three most powerful trading strategies in Forex market

Forex trading can be a very challenging profession for new traders. People are always fighting hard to secure their financial freedom. Despite having the best education from the top tier universities it’s really hard to secure a decent job. For this very reason, people are always looking for an alternative source of income. The moment you learn to diversify your revenue source is the very moment you start learning new things about the market. Though spread betting is very popular yet the number of successful traders is very low. You need to have a systematic approach in this retail trading profession to earn a decent amount of money. So, let’s learn about three amazing trading strategies which can help you to become a profitable trader.

Trend line trading strategies

Trend trading strategies are mostly for long-term traders. People often get frustrated after losing consecutive trades and start executing trades against the market trend. Regardless of the outcome of each trade, you should always remember trend is a friend. Start using the daily time frame to find your trend line support or resistance level. There are a few things you need to consider to become a professional trend trader. First of all, learn about the key swings of the market. In order to find the bullish trend line support zone, you need to join at least three higher lows. Similarly, by joining three lower highs you will get your bearish trend line resistance. Once you have your potential trading spot, look for a clear price action signal. Though this system is extremely profitable but always remember, the trend is not perfect and you will often have to lose trade due to a trend reversal.

Use of chart pattern

Chart pattern trading system is mostly used by the experienced professionals. Among different kinds of spread betting strategies, the expert always charts pattern trading system. It allows them to catch big market movements with an extreme level of precision. Being a chart pattern trader, it will be very hard for you to wait in the sideline. Patience plays a great role when it comes to long-term trading strategies. Unless you wait for the major breakout you can’t be sure a trade setup is going to work. This is where most novice traders fail. They execute trade prior to the major breakout and loses a big sum of money. As chart pattern trader, it’s imperative to have good knowledge of fundamental news. Since the high impact news is the most powerful price driving catalyst in this market. Once you start to understand the correlation between chart pattern and fundamental news, you can easily make a huge profit from this market.

Use of 100 and 200 days SMA

100 and 200 days SMA is one of the most profitable indicators for the scalpers. Many people in the United Kingdom believes the short-term trading system is the best. But to become a scalper, you must know the perfect entry point for your trades. This is where 100 and 200 days SMA become useful to the UK traders. These two indicators are nothing but a simple moving average. MA acts as a dynamic support and resistance level in any currency pairs and the smart traders use pending orders to make a quick profit from the market. For instance, when the market is in a downtrend, experts place pending sell orders right at the 100 or 200 SMA. Just after hitting the SMA, the price tends to drop 10 – 20 pips. And for such a trade setup, you should never use more than 10 pips stops. If you are looking to make a decent profit with 1:2 risk reward trade setup, you should learn how to use these SMA. However, you should not use this trading strategy prior to high impact news as the market is most likely to create wild spikes.