Scalping forex strategies are designed to capture micro market movements within a short period. Most scalping forex strategies require you to target a few pips usually less than 10 in 15 minutes or less. This leads to high transaction costs spreads and commissions. The use of automated software EAs can help some traders deal with this aspect, but not many people have the skill.

Trend following strategies are designed to generate trading opportunities in the general mid-term direction of the market. The logic behind such strategies is the fact that the market is likely to continue in a specific direction for a period. They wait for the market to move and then join in the existing direction as early as the strategy dictates. Even when using a trend following strategy on a short timeframe like the 5-minute chart, there may be less than 4 trading opportunities per day.

Range trading strategies try to extract profits from the market when it is in a lull or moving with no bias for a specific direction. In such a situation, the tradable instrument oscillates between specific higher and lower barriers.

Such strategies attempt to help you catch the top or bottom of a move. This means trying to pick a bottom or top when the instrument is strongly bearish or bullish.

Automating the process with software or limit orders increases the chances of a loss when the market eventually moves out of the range. Now that you know some of the main categories of forex trading strategies, here are some powerful strategy options you should consider adding to your trading arsenal. Remember, these strategies are not infallible—none of them is. They can help you generate profits, but you will also have losing trades. Use them at your discretion.

Try them out on Mitrade demo account before risking your live funds with them. To trade this strategy, open the 1 HR chart of the pair you are interested in, and mark the high and low for the day from the open of the Asian session to the start of the London session.

For a buy trade, wait for an hourly candle to close above the existing high before the London session opened, and wait for an hourly candle close below the existing low for a sell trade. The Take Profit level should be at least two times the Stop Loss value. The Exponential Moving Average EMA is one of the best technical indicators in forex trading. It helps you to get a directional bias on any chart with just one glance. EMA crossover strategies deploy two EMAs of different values lower and higher and then take a position in the market based on the direction of the crossing.

Some popular EMA combinations for this strategy include 5 and 7, 10 and 20 the combination used in our sample image and 15 and Generally, you should enter a sell trade if the lower value EMA crosses the higher value option from the top to down.

It is signifying a downward trend shown in the image above. If the lower value EMA crosses the higher value variant from the bottom, it is showing an upward trend. In a buy trade, the Stop Loss limit should be at the most recent low. In a sell trade, it should be at the most recent high. The Take Profit level should be at least two times the Stop Loss Value.

Some users of this popular trend following strategy hold their position until they get an opposite crossing, but this increases the chances of losing some or all of your existing profits if the market makes a sudden reversal. This strategy may require you to download a technical indicator for your trading platform.

For Metatrader 4, there are lots of Gann related indicators available for free. One of them is shown in the chart below:. When the Gann indicator displayed shows a yellow ribbon, it means that the market has potentially entered a downtrend. The blue ribbon signifies an uptrend.

Ideally, you should enter a position just after the close of the candle that triggered the colour switch. The entry candles are marked by the three arrows. As you can see on the chart, some of the trend switches were false dawns that would have led to a losing trade. However, the positive trades were richly rewarding. This is why you need to be careful with your Stop Loss and Take Profit limits when using this strategy.

Many users of this strategy place a Stop Loss limit at the low or high of the signal candle the first candle that caused the switch , depending on the direction of the trade. They also trade without a designated Take Profit level, trailing the profits instead.

This is a powerful range trading strategy that attempts to predict where the market is likely to turn. The logic is that the market will turn bearish at a resistance level, and bullish at a support level. This means that at a resistance level, you enter a sell trade, and at a support level, you enter a buy trade.

There are many tools for establishing support and resistance levels. Some of the options include Bollinger Bands, Pivot Points, Fibonacci Ratios, and more. Choose a specific method and research on it extensively. With Pivot Points, for example, you can map out the possible support and resistance levels for a day, week or month, and take trades off these levels.

Below is a chart of what trading off a support or resistance looks like:. You can see how price reacted at the top of the range resistance and bottom of the range support. If you enter a sell at resistance, your profit target is the support level and vice versa. The Stop Loss limit should be pips away from the latest high or low before your entry.

The pinbar strategy uses one element of Japanese Candlesticks to predict future price movement. The logic is that a pinbar shows that the market is about to change direction—like an arrow created by the behaviours of market participants. It is often used in combination with other strategies like Support and Resistance for a higher probability of success. In the chart above, the red arrow shows a pinbar formed exactly on a support zone.

This market went on to go on a mini bullish run. The profit target when using such strategies can be the next support or resistance zone, or multiples of your Stop Loss value for a good risk to reward ratio. The Stop Loss limit should be placed below or above the pinbar, for buy or sell trades respectively. The Bollinger Bands is another powerful technical analysis indicator that has been around for decades. It creates a channel around the market movements on a chart. If the touches the lower boundary, there is a possibility that the lower band will act as a support level and cause a reversal.

This is shown in the image below. Gold real-time quote on Mitrade. More specifically, you have to understand where prices are, relative to major Price Levels. Moreover, good setups should be easy to execute.

The best forex strategy should be simple and straightforward to make your life as a forex trader as easy as possible. You want to get to the point where you are mechanically and objectively executing the best forex setups.

The best forex strategy should also be primarily based on price action trading. Price action trading is trading based solely on price without the use of any indicators. The most important price action pattern that you need to master is the Reversal Pattern. There is no better and safer way to enter into trades other than by identifying multiple Reversal Patterns at major Price Levels.

If you really like to use a particular indicator, by all means use it. However, you should only use an indicator as an additional confluence to price action trading. The best forex strategy should also allow you to always execute trades above a 1 to 1 reward to risk ratio.

Ideally you want to execute trades with a higher reward to risk ratio such as 2 to 1. If you lose, you only lose 1 point. However, when you win, you gain 2 or more points depending on your reward to risk ratio. Lower risk with a higher reward is smart trading. Never enter into a forex trade unless it offers you a reward to risk ratio greater than 1 to 1. This is the simple mathematics of forex success. The best forex strategy should also be a set and forget strategy. This means you set your trade and then you forget it until a certain time later, where you would close your trade out.

In other words, you should not be monitoring your trades. No monitoring means no stress and no emotion. You set it and you forget it until a later time such as the end of your trading session. You should never just sit there stressfully looking at prices spike up and down. A set and forget strategy will help you focus on becoming a better trader and it will also help you make better trading decisions.

Instead of being stressed out and watching your money go up and down, your focus can be more geared towards making objective trading decisions. Eliminating the emotion of trading will allow you to become a better forex trader. Knowing the best forex strategy is not enough.

You also need experience and the right mindset to be a successful trader. Forex trading is not easy. It requires a tremendous amount of practice and experience. In addition to experience, you also need the right mindset, particularly when you lose.

A trader with the right mindset understands that he or she will have plenty of losing trades regardless of experience.

There are three critical components to achieve consistent profits in forex. First, you need the absolute best forex strategy. Second, you need experience. Third, you need the right mindset. All three of these components are required in order for you to become profitable in forex. When you master forex, you unlock a lifetime of income potential from the comfort of your own home. The financial freedom that you can obtain by mastering forex is priceless. The following content will discuss the attributes or characteristics required of the best forex strategy.

After explaining these essential elements, we will also discuss experience and the right mindset, because elite trading requires these items as well. The best forex strategy should help you better understand the daily market direction. Understanding the daily market direction is the single most important skill you need to develop as a forex trader.

The major trades of the day begin with prices reacting at major Price Levels. The key to truly understanding the daily market direction better is the concept of Price Levels. This is a prerequisite for optimal forex trading success.

Identification Of The Best Setups The best forex strategy should also allow you to identify the absolute best setups on a daily basis. Quality forex trading requires the execution of quality forex setups. You have to know exactly where you are on the forex map. More specifically, you have to understand where prices are, relative to major Price Levels. Moreover, good setups should be easy to execute. The best forex strategy should be simple and straightforward to make your life as a forex trader as easy as possible.

You want to get to the point where you are mechanically and objectively executing the best forex setups. The best forex strategy should also be primarily based on price action trading. Price action trading is trading based solely on price without the use of any indicators. The most important price action pattern that you need to master is the Reversal Pattern. There is no better and safer way to enter into trades other than by identifying multiple Reversal Patterns at major Price Levels.

If you really like to use a particular indicator, by all means use it. However, you should only use an indicator as an additional confluence to price action trading. The best forex strategy should also allow you to always execute trades above a 1 to 1 reward to risk ratio.

Ideally you want to execute trades with a higher reward to risk ratio such as 2 to 1. If you lose, you only lose 1 point. However, when you win, you gain 2 or more points depending on your reward to risk ratio. Lower risk with a higher reward is smart trading. Never enter into a forex trade unless it offers you a reward to risk ratio greater than 1 to 1. This is the simple mathematics of forex success. The best forex strategy should also be a set and forget strategy.

This means you set your trade and then you forget it until a certain time later, where you would close your trade out. In other words, you should not be monitoring your trades.

No monitoring means no stress and no emotion. You set it and you forget it until a later time such as the end of your trading session. You should never just sit there stressfully looking at prices spike up and down. A set and forget strategy will help you focus on becoming a better trader and it will also help you make better trading decisions.

Instead of being stressed out and watching your money go up and down, your focus can be more geared towards making objective trading decisions. Eliminating the emotion of trading will allow you to become a better forex trader. Knowing the best forex strategy is not enough.

You also need experience and the right mindset to be a successful trader. Forex trading is not easy. It requires a tremendous amount of practice and experience. In addition to experience, you also need the right mindset, particularly when you lose. A trader with the right mindset understands that he or she will have plenty of losing trades regardless of experience. Sometimes the market will simply go against your trades, no matter how good you are. A trader with the right mindset emotionally deals with losses well and understands that losing is a natural part of the forex game.

In summary, the best forex strategy should: 1 help you better understand the daily market direction, 2 allow you to identify the absolute best setups on a daily basis, 3 mainly incorporate price action trading, 4 allow you to always execute trades above a 1 to 1 reward to risk ratio, and 5 be a set and forget strategy.

In our expert opinion, the absolute best forex strategy for consistent profits is our Forex Price Levels Strategy. Best Forex Strategy For Consistent Profits. Table Of Contents:. How To Achieve Consistent Profits In Forex Understanding The Daily Market Direction Better Identification Of The Best Setups Mainly Price Action Trading Good Reward To Risk Ratio Set And Forget Strategy Experience And Mindset What Is The Best Forex Strategy?

How To Achieve Consistent Profits In Forex There are three critical components to achieve consistent profits in forex. Understanding The Daily Market Direction Better The best forex strategy should help you better understand the daily market direction. Mainly Price Action Trading The best forex strategy should also be primarily based on price action trading. Good Reward To Risk Ratio The best forex strategy should also allow you to always execute trades above a 1 to 1 reward to risk ratio.

Set And Forget Strategy The best forex strategy should also be a set and forget strategy. Experience And Mindset Knowing the best forex strategy is not enough. What Is The Best Forex Strategy? Learn More:. Forex Price Levels.

You will find that certain instruments trade much more orderly than others. Trading forex - what I learned Trading forex is not a shortcut to instant wealth. The 3 Main Categories of Forex Trading Strategies Powerful Forex Trading Strategies For Consistent Profits Important Rules to Keep in Mind When Using a Forex Trading Strategy Final Word. If the breakout happens on the upper Bollinger, it is a buy trade. This means that at a resistance level, you enter a sell trade, and at a support level, you enter a buy trade. If calculate for yearly of days trading then it becomes When the overnight rate is changed, retail banks will change their prime lending rates accordingly, hence affecting businesses and individuals.

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