Forex trading Strategies: Sometimes choosing the right Forex trading strategies in your Forex trading can be very overwhelming. There seems to be 1,000,001 traders out there telling you that they have the best Forex trading strategies for beginners and pros alike. So the question is this…”Josh, if I want to improve my Forex trading today, what are the best Forex trading strategies that I can implement..TODAY! I am going to show you one of the best Forex day trading strategies you can use.
Most Forex traders change Forex trading strategies like they change their underwear. They always seem to be search for the “holy grail” of Forex trading strategies. And of course I personally believe that the “holy grail” of Forex trading strategies is developing a proper money management plan. But once a trader has their equity management plan and they learn how to trade simple support and resistance from key levels, most of the problems that I see with traders who are struggling with their Forex trading come down to the chart time frame they are trading.
For some reason I see newbie traders trying to trade from the 5 minute charts, trying to scalp the market, and are getting slaughtered. Though trading from the 5 minute charts works well if you are scalping the market, the lower time frame charts can also cause a lot of stress because of the quick movements it can make. So whether you are a complete Forex beginner or you are a seasoned trader who may be struggling with your Forex strategies. I am going to give you my Forex strategy secrets. I am going to suggest that you scrap the lower time frame charts and adopt one of the best Forex trading strategies…start trading from the daily charts.
The reality is the lower the time frame of your chart the more “noise” you are going to see. Let’s take a look at a 5 minute chart on the GBP/JPY. If you look at the chart below, though it is not impossible to trade most of the potential trade opportunities are going to be quick, aggressive, and will offer a unfavorable risk/reward. And unless you are a very skill as a Forex scalper, trading from the 5 minute charts is NOT one of the greatest Forex trading strategies you can implement. Price action can be very bouncy on these lower time frame charts. You can see that price is jumping around without much of a definitive direction.
Forex Trading Strategies : The Daily Chart
Now let’s take a look at the same currency pair on a daily chart. Each one of these candles represents an entire day. Now, if you are trading from the 5 minute charts you need to be in front of our charts constantly in order to find a solid trade. But when you trade from the daily charts you can plan way in advance what your trade will be because you are going to be taking your trades from key levels. Trading from the daily charts allows you to clearly see when you would find potential trade setups and plan your trades accordingly. We will get more detailed on other Forex trading strategies such as trading from key support and resistance levels and price action on how and where to enter these trades from the daily charts. But for now, I just want to drill into your head to start trading from the daily charts.
Forex Trading Strategies: Using Heiken Ashi Candlesticks
Now, I am not going to get too detailed on one of my favorite Forex trading strategies when trading from the daily charts. And that is the use of Heiken Ashi Candlesticks. In a nutshell, Heiken Ashi candlesticks help to clear out some of the “noise” from the charts. If you look at the chart above you will see standard Japanese candlesticks. Red candles mean price went down for the day and green means price went up for the day. You can see that the color of the candlesticks can sometimes change from day to day. Now look at the chart below. This is the exact same chart as the chart above but I changed the candlesticks to Heiken Ashi. Do you see how much smoother the chart looks? I will be writing another article on using Heiken Ashi candlesticks shortly.
So in a nutshell folks, if you are struggling with your Forex trading, trying utilizing one of the simplest of Forex trading strategies..start trading from the daily charts. For more Forex trading strategies visit our YouTube Channel. You can also register for free to receive Free Forex training., Forex trading strategies and Free Forex Entry Strategies here.
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