Forex trading strategies involve the combination of chart indicators as well as chart price patterns in order to derive forex entries and exists. There are also fx trading strategies based on fundamental factors, but all short term strategies must include some technical trading component. The below strategy uses simple moving averages to trigger entries (both long and short positions) as well as exit points. It can also be used to have continuous position in the market (to catch big moves.) This is a purely technical forex strategy which can be combined with your own judgment and fundamental factors to increase success.
Chart Time Frame:
This strategy is effective on a 30 minute or hourly chart. However the time frame can be changed to cater to your own trading style.
Chart Indicators needed:
9 SMA (on close)
100 SMA (on close)
Trade Entries:
New long entries - When the 9 SMA indicator line crosses above the 100 SMA
New short entries - When the 9 SMA indicator line crosses below the 100 SMA
Trade Exits: Close a trading position or reverse the position when the 9 SMA crosses back across the 100 SMA.
Before you begin your forex trading venture, it is important to learn the basics of how currency trading and forex works. Of course, encyclopedic knowledge could not be enough (and updated) so you really need help to get you through online trading for foreign exchange. Learning about the forex online trading can help one to become a successful foreign exchange trader.