1. Divergence Trading
The basis of divergence trading is that the movement of oscillating indicators does not often follow the real price movement. Rather, it takes into account the fact that price can make very high peaks while the indicators are making lower peaks. This trend results into inconsistencies that often lead to good trade signals. If you choose to be a divergent trader, then you’ll have to rely heavily on the use of indicators as your main decision to either enter or exit a trade. You’ll also have to look out for better indicators that display accurate and hidden divergence. Using multiple oscillating indicators as added confirmation may also be very useful.
2. Support/Breakout and Resistance/Supply, Volume and Demand Trading
This type of trading strategy is based on the fact that, historically, price often either bounces out of certain levels, or breaks out of a consolidation period. Traders who normally stick to this kind of trading often take advantage of it by straddling their niche on the very edges of the consolidation-period. This is because they believe in certain in certain price zones characterized by either a break through or a bounce in price. It is, therefore, possible for you to take advantage of this by trading on the reaction of the price on given levels, and by taking into account any likely overbought and/or oversold areas. This strategy, however, will force you to rely heavily on your understanding of supply, demand and volume, the causes of the consolidation/S&R levels, the possible indicators of a forthcoming breakout or bounce, and the direction that the breakout or bounce will likely go to.
3. Trading the Forex-Fractal
The Forex-fractal is more than just a strategy. It is a market concept comprising basic fundamentals that you vitally need know. It will help you get to know what price is doing, and why it is doing it as well as who is actually making it move. Fractal refers to areas of price consolidation and channeling that are consistently being watched by the so called Big Guns in the Forex market, therefore, forming levels of support and resistance. Though it is simple to note a single price channel on a chart, stacking fractals on top of each other will enable you begin to see whether price is actually fractalling or fracturing, along a trajectory, either bearish or bullish. This will give you a more powerful information since it also provides information of the trend and how far price might surge when it breaks out from a fractal, before it withdraws back into the body of the fractal. This strategy, however, requires the help of a reputable financial website such as Macroaxis that is able to manage investments using the Modern Portfolio Theory (MPT). The MPT is very useful because it is based on simplicity, accessibility and speed. Macroaxis is a sophisticated company, yet simple and it will help you manage the structure of your investment portfolio to conform with the Forex trends. They provide advices based on how much of a risk-taker you area and based on the most trusted indicators.
4. Price Action (PA) Trading
In Forex trading, price is king and your P&L is directly, not by your indicators, but by the price itself. Price Action trading is an almost naked trading that involves using price patterns solely to determine entry and exit. In fact most traders who use PA as a trading technique use price as the leading indicator. The technique is based on the belief that price patterns repeat itself because there are repeated human behaviors. If you are a PA trader, then anything that ends to hinder the view of the price on the chart is itself detrimental to your trading. This is the exact reason why you would not have to use indicators like 3 line break, Heikin-Ashi, or any other thing that may superimpose the price view because price becomes your only way to understand the market movement.