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Key Forex Trading Strategies Exposed

Jun 28, 2008
With the popularity of forex trading since middle of year 2004 when it even overtook the interest in futures and commodities trading, we have seen a lot of forex trading systems being developed. As new technology evolved, we have also seen the power of the desktop computer being harnessed for running trading platforms involving all sorts of forex trading systems instead of using computer mainframes.

We should know who we are as forex traders. Does our character fit the pip sniper mode or does our nature draw us more towards swing forex trading. Finding your trading character would simply mean studying and practicing the different time frames and related with Forex trading strategies. Over time you might also notice a higher level of achievement and/or ease trading one style over others. You need to pay attention! The forex market is uttering you where your cleverness is more competent of extract reliable profits for the market. This is why journaling is so imperative to your every day forex trading.

Technical Analysis: In this forex trading strategy the trends in price are analyzed. It depends on charts and patterns to trace the trends. The Simple Moving Average Cross over Method is one of the simple forex trading strategies used reliably to OPEN the position in the forex market. In this method different colours are used for different trend lines. For instance, use blue colour to plot SMA5 and red colour to plot SMA20. When the SMA5 crosses the SMA20 moving upwards it indicates a buying signal. When the SMA5 crosses the SMA20 moving downward it indicates a selling signal.

The Moving Average Convergence Divergence Method uses standard settings with any time frame and any currency pairs. This method is used to CLOSE the position in the forex market. When the MACD lines crossover appears indicates the buying signal and when next MACD lines crossover occurs it indicates a selling signal.

Stocks and shares normally have less volatility then forex, the difference being trading stocks and shares would involve a study of accompanying volume. In contrast, we are concerned with price and time action in forex and not volume. Further. many forex traders are more familar with trading stocks and shares, and to use a forex trading system on stocks and shares would allow the trader who is transiting from trading stocks and shares to trading forex, an easier way to learn how to trade forex.
About the Author
Learn more about forex trade and obtain a free copy of your FOREX Guide from http://www.forex-trading-guru.info - a popular FOREX website that specializes in providing FOREX tips and advice.
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