Every business company makes its own strategy that helps it to keep move forward in any sudden fluctuation. A strategy in Forex trading, likewise, is a necessary element that enables the trader to understand and monitor the whole market situation. Forex trading has hundreds of trading strategies that can be adopted, but, here, Forex City Capital brings three commonly used strategies that may prove beneficial for your trading.
Moving Average strategy is often used for quick response to the price changes in current time interval. It is designed with the help of moving averages (MAs). These moving averages are basically the frequent use of a technical indicator in trading, especially over 10,50,100 and 200 periods. In this strategy, we create a trend using trend indicators that identify support and resistance levels in the given time period.
Price Action strategy is based on the actual price movements that allow you to examine the current market details and make proper trading decisions without lagging indicators. The most important factor in Price Action is to show the present and future price details instead of the past market details. It keeps you on the winning side of the market and helps you to understand the actual price trend.
In the case of adverse price fluctuations, hedging strategy is used to reduce the risk exposure in a currency pair. This strategy can eliminate all risks associated with the trade by holding both a short and a long position simultaneously on the same currency pair.