the brutal world of Forex trading, therefore, keeping it simple is always the best move. You shouldnt be scared of something thats simple. Time frame - Any. Three Day Average Fibonacci Forex Trading forex technical analysis chart patterns Strategy. If the price stalls out right away, like it did here, we then wait for a bullish engulfing pattern.
Sometimes it does continue lower, but quite often a false breakout occurs, which is when the price moves right back into the range. The two other strategies just discussed are long term, now, we will look at a short term strategy for profit Forex swing trading. Each swing high is higher than then last swing high, and each swing low is higher than the prior swing low. Having a trend strategy and a false breakout strategy in your trading arsenal allows you to adapt and stay profitable in all types of market conditions.
Dont second guess, or assume/presume anything. But as seen above, in this strategy, the profit from the profitable trades is cumulatively greater than the losses from the losing trades. Failure to implement the strategy fully and not following the rules and guidelines is the number one reason for losses of majority of day traders. Most traders cant do it because they think they have missed a bit of the move and want to wait for the pullback, but in strong moves this never occurs and they are left watching the move pile up thousands of dollars and theyre not. We buy if the price moves above the high of the consolidation. How do we know whether we should place our target outside the pattern or in the crotch?