It is a pretty simple day trading strategy but remember that many times, the best day trading strategies that work are actually simple in design which can make them quite robust.
I think this is a great day trading strategy for beginners because you do not need to learn complicated indicators or price patterns. The trade setup is quite clear but like any trading strategy, risk management is vital for your overall success. It is very similar to the London breakout system that is also on this website. We are going to use the major Forex currency pairs and the first thing you will want to do is open up the daily chart to look for the pair that has a decent daily range.
To keep this standard, this method will be using 7 a. GMT candlestick on the 1 hour Forex chart. Make sure that the time you see on your MT4 chart matches that of 7 a. If not, ask your Forex broker.
You can also use Google to calculate what that time is in your time zone. For me, it is 3: Lets look as some trading examples where the Forex trading signals either won or lost. The vertical dotted line you see drawn on the chart represents the 7 a. GMT time and they are spaced 24h rs apart 1 day. Often times, the highs and lows also represent both support and resistance although it is on a very limited basis.
Breaking of support or resistance when volume is coming into the market can lead to strong moves in the triggered direction. Yes, although you will have to live with missing some trades at times. For example, when you see a strong momentum move against the trend, that will often lead to another leg counter-trend. There are many pips that can be found. You will certainly want to be able to evaluate trend strenght through technical analysis to see if this is a trade you can hold.
This is one of those day trading techniques that looks to trade breakouts of support and resistance. There are times when breakouts occur and then pullback which can give you an entry.
Just as often though, price will take off and not look back leaving you on the sidelines. Yes, this method may have you triggered into the trade and promptly stopped out as the bull trap or bear trap plays out. These concepts are not confined to one market to be successful as it is based on market mechanics. All I can say is test.
Some will say that value has a price. Others will say the best things in life are free. You decide if any of the methods you see on this trading strategy site are good.
You do not have to pay big bucks for a Forex trading system to find success in trading. Only you know your risk comfort. The best tip I can ever give is no matter what day trading strategy you use, use a stop-loss. Is this the best day trading strategy for you? Will you find the trading success that you seek?
Daily Trading Strategy Setup To keep this standard, this method will be using 7 a. Do you need a Forex indicator? This day trading strategy does not require the use of any trading indicato r and is a pure price action trading method.
What time frame will you be using? For our purpose, we will use the one hour chart but you can certainly test this on other time frames. Can I use any currency pair? Prev Article Next Article.More...