If you are looking for the best Forex trading strategy then you’ve come to the right Forex website.
I’ve listed the 31 best Forex trading strategies that are based on solid trading fundamentals of support and resistance trading with price action.
Forex Strategies You Can Use Today
The trendline forex trading strategy is based on the concept that when price hits a trendline, it bounces back and therefore the trendline trading system is about capturing price at its earliest before it bounces back up or down.
This is one system where you can actually capture the tops and bottoms of market swings at the right time and ride out the trend so that you can let your trading profits run.
The use of reversal candlesticks with this system greatly enhances it.
The risk:reward of the trendling trading system is simply great and the trendline trading system can be applied to all currency pairs in all timeframes.
The trendline breakout forex trading system is based on the concept that when price breaks a trendline, it usually signals the start of a new trend.
So if you want a forex trading system that captures a new trend from the start, this is one of them. It is one of the best breakout forex trading systems you can find that is entirely based on price action.
This trading system is based on the price behavior of breaking a trendline and then returning to touch that trendlien that has just been broken and then bounce back up or down.
The use of reversal candlestick greatly enhance this trading system.
This strategy is solid and timeless.
We know when price hits a support level and if there’s enough buying power happening on the support level, price bounces up from that support level. We also know that the opposite is also true…if there’s enough selling power when price hits a resistance level, price will start heading back down.
Therefore this support and resistance forex trading strategy is about capturing those bounces back.
What type of trading system would you use when price breaks a support level? Well, the support level breakout forex trading system.
We know that support levels are not lines drawn in concrete…they do get intersected and broken and therefore you can use this support level breakout forex trading strategy when you see price breaks a support level.
The resistance level breakout forex trading system is used when you see price break a resistance level.
You see, resistance levels cannot last forever, eventually they get broken(intersected) and this system is about capturing the price move upwards when you see a resistance level get broken.
The 123 forex trading system is based on a simple price action pattern called the 123 pattern. It is also a very good breakout forex trading system that can be used in all currency pairs and all timeframes but for best results, it is good to use on larger timeframes like 15 mins and above.
When an inside bar forms, it signals a period of consolidation where price narrows down and does not move much at all. But this is only temporary. Often, when the next candlestick (or bar) forms, price tends to rocket up or down and therefore this is one forex trading system all forex traders need to know.
Therefore the inside bar forex trading strategy is designed to capture the price breakout when it happens…at its earliest stage of breakout.
This is a trading system designed to trade the breakout of the Asian forex trading session’s high and low. Forex market is a 24 hour and if you open up your charts and see how price moves during the Asian session, you will see that it really does not move much like the price moves in the UK or the New York Trading Sessions.
Therefore, this trading system is designed to capture the breakout of the Asian high and low when the UK market session is coming into play.
What happens when you see a double inside bar form on your chart? Well, you use the double inside bar forex trading strategy. This system is very similar to the inside bar forex trading system.
If you are looking for the best trend trading strategy for all timeframes, this one makes the cut because it is based on price action trading. Check it out.
Can you make 20 pips daily? Or rather, would you be satisfied just to make 20 pips profit for each day and that’s it, you are done trading for the day?
Well, if you are like that, then this 20 pips a day forex trading system is worth having a look.
The main idea behind the 20 pis a day trading strategy is this: if price on average can move 100 pips plus in a daily candlestick, why not just take 20 pips off that move?
Why? Because it is easy to hit the target of 20 pips profit easily then say 150 pips…
The bullish engulfing pattern is another solid trading pattern and in order to trade it, you need to use this bullish engulfing pattern forex trading strategy.
This is a very powerful forex trading system. Even though it may not happen frequently, when it does happen, getting 100-300 pips profit can hit your forex trading account easily. But you just need to know what to look for in when the trading setup is happening. Check it out!
You want to know how to combine fibonacci retracements with reversal candlesticks? Well, this fibonacci with reversal candlestick forex trading strategy can help you do that.
The 50 pips a day forex trading strategy is similar in concept to the 20 pips daily candlestick breakout system but with this one, you increase your stake to 50 pips profit.
The logic is simple…if a currency pairs moves 150 pips a day, when not try to capture just one third of that move? Well, 50 pips a day forex trading strategy is just for that.
If you’ve traded the forex market for a while, you would know how powerful a pin bar that forms on the daily chart can be, right?
If you see a pin bar on the daily chart, it simply show a drastic change in the underlying market sentiment and therefore you should take notice.
The breakout of the high or low of pin bar often signals the start of a new trend. Now this Daily Pin Bar Forex Trading Strategy is designed just for that situation.
If you want to know what the ross hook pattern is and how to trade the ross hook pattern, then this system teaches you how.
Everyone knows that the currency markets move a lot during the London Session. This forex trading system is a breakout system designed to capture the price moves earlier during the London session.
#20: Demark Forex Trading Strategy
Tom Demark is the one credited with this system. It is a breakout trading system and the breakout is based on trendline breakouts which are drawn on the most recent swing highs/low.
There will be times when you will see price head up to a resistance level, break it and head up and you will think “Oh, this resistance level is broken now.”
But guess what happens next? The next 1 or 2 candlesticks after the breakout, you will see price move and head back down.
You are left there scratching your head…you have been fooled.
So what happened here?
Well, its a thing called a false breakout. Like it or not false breakouts happen frequently in forex and if your stop loss is too close to the support and resistance level, you will get stopped out only to see price moving in the direction of the trade you placed in the first place!
But the fact that you are now licking your wounds does and price is heading in the direction you knew it was going to go makes it really frustrating.
Well, how do you avoid that.
Forex traders who have been trading for a while will notice this: there will be times when you will see support levels get intersected and then later, price will head up to these support levels that it broke previously. And guess what happens here? Yep. These previously broken support levels now act as resistance levels which price hits and moves back down!
A similar thing but opposite also happens when a resistance level gets broken. Price moves up and then it will head back down to the the resistance level it broke previously. Guess what happens here? Well, there’s tendency for price to find support on that resistance level it broke previously and bounce back up!
So this support turned resistance and resistance turned support forex trading strategy is designed based on that behavior of price.
This forex trading strategy is based on the popular symmetrical triangle pattern.
Triangle patterns like the symmetrical, ascending and descending triangles form on charts every day from the 1 minute chart up to the daily and many forex traders miss out on great trading opportunities presented by these chart patterns because of their lack of knowledge about them and how to trade them.
Don’t be like that, you got to know.
When price breaks out of the symmetrical triangle, the moves is often explosive and can go for hundreds of pips if you are trading off the 1 hour, 4hour or the daily chart.
The risk to reward of this trading system is really good.
The ascending triangle chart pattern is another popular forex chart pattern and is generally considered a bullish chart pattern.
The breakout of price out of this pattern tends to be explosive so knowing what the ascending triangle pattern looks like and how to trade it is important if you want to profit from it.
Similar to the symmetrical triangle, the risk:reward is really good for this chart pattern as well.
If you want to know what a descending triangle pattern looks like and how to trade it, this is it.
This descending triangle chart pattern has really good risk:reward and breakouts tend to be explosive if you are right in your trade, you’d be smiling.
This forex trading system is based on a popular forex pattern called the double top pattern and it is a bearish reversal pattern.
Once you see this form in an uptrend, you need to take note that the uptrend may be ending soon.
The use of bearish reversal candlestick to confirm your short entries will really enhance your trade entries.
This forex trading system is based on the double bottom pattern, a bullish reversal pattern.
If you see a double bottom pattern form in a downtrend, it means you need to sit up and take notice because the downtrend may be ending and it is time to buy.
The use of bullish reversal candlestick for trade entry confirmation will really enhance your trade entries here.
As long as the markets exits, head and shoulders pattern will always form.
Many forex traders fail to see the amazing buying and selling opportunities that happen when a head and shoulder pattern forms.
Don’t be like them.
What happens when you see two candlesticks of reasonable sized equal lengths and body size form just one after the other…but the only thing though is that one is bullish and one candlestick is bearish?
Well, that’s what’s called a railway track pattern.
If you see the railway track pattern forming on support and resistance level, you better take note because a reversal is just about happening.
Sometimes, one of price behaviors is to form horizontal channels. How do you trade it?
Well, this Horizontal Channle forex trading system is designed for that.
The use of bullish and bearish reversal candlesticks is recommended to really greatly enhance your trade entries.
The Floor Traders Method in my opinion is the best moving average forex trading system simply it is based on the concept of dynamic support and resistance levels.
The risk:reward of the floor traders method is really good and in a trending market, making 100-200 pips profit can be easily achieved with this system
So There You Have It…31 Best Forex Trading Strategies. Which One Have You Chosen?
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