Simple forex strategy for beginners

Simple forex strategy for beginners

By: Vektor Date of post: 29.05.2017

This is a common question among traders just starting out and for good reason. The trader who has been struggling for years has to not only find what works best for them, but they also have to break any bad habits and put aside negative feelings they may have built up over the years.

The pin bar trading strategy is perhaps the best Forex strategy for beginners. One of the basic principles of technical analysis is that former resistance becomes new support.

Simple Forex Trading Course and Trading System

Sure enough the market found support at former resistance and formed a bullish pin bar in the process. In the chart above, GBPCAD met resistance after an extended move up. Shortly after forming these pin bars, the market continued its rally for an additional pips. Another highly-effective Forex trading strategy for beginners is the inside bar strategy.

Unlike the pin bar, the inside bar is best traded as a continuation pattern.

This means we want to use a pending order to trade a breakout in the direction of the major trend. Notice how the bar preceding the inside bar is much larger in size. Notice how USDJPY was coming off of a very strong rally when it formed the inside bar on the chart above. These are the best inside bars to trade because it shows a true consolidation period which often leads to a continuation of the major trend, which in this case is up.

This strategy is different than most of the conventional breakout strategies out there. The opportunity to trade this pattern occurs when the market breaks to either side and then retests the level as new support or resistance.

My Forex Strategy - A Simple Forex Strategy Using Just 2 EMA's

In the case of the illustration above, the entry would have come on a retest of support-turned-resistance. Notice how in the USDJPY 4 hour chart above, the market touched the upper and lower boundaries of the wedge several times before eventually breaking lower. As soon as the 4 hour bar closed below support, we could have looked for an entry on a retest of former support, which came just a few hours later. Although the pin bar trading strategy is my favorite, I have had some of my largest trades using the Forex breakout strategy above.

The market will often react quite aggressively after the breakout occurs, allowing traders to secure a large profit in a relatively short period of time. So there you have it. Three simple Forex trading strategies for beginners. These strategies are by far my favorite and for good reason. The best part is, they are extremely simple to understand and are therefore easy to incorporate into your trading plan.

Justin Bennett is a Forex trader, coach and founder of Daily Price Action. He began trading equities and ETFs in and later transitioned to Forex in His "aha" moment came in when he discovered the simple yet profitable technical patterns he teaches today. Justin has now taught more than 1, students from 53 countries in the Daily Price Action course and community. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information.

By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Daily Price Action, its employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets.

Don't trade with money you can't afford to lose.

Forex Trading Strategies for Beginners | Daily Price Action

No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

simple forex strategy for beginners

Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets.

Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Forex Trading Strategies for Beginners 9 COMMENTS.

Below is an illustration of an inside bar during a rally. Below is an inside bar that formed on the USDJPY daily chart during a strong rally. Here is an illustration of the Forex breakout strategy. Here are a few key points from the lesson: The pin bar trading strategy is best traded as a reversal pattern in the direction of the major trend The inside bar trading strategy is best traded as a continuation pattern The Forex breakout strategy should be traded after a break and retest of either support or resistance All you really need to become profitable trading Forex is two or three great trading strategies.

Private Trading Community Login Sign up for a lifetime membership. Copyright by Daily Price Action, LLC.

inserted by FC2 system