Forex Smart Trading Strategies
Trad forexrebatebestg Strategies All trading classifications are completely arbitrary The following classification emphasizes the basic concept of classification from trading According to the trend According to the trend strategy waits for the price change in the same direction as the position opened In th forex broker rebate program way, we assume autorebateforex the trend will keep changing in this direction When trading according to the trend, we can never sell near the highest price or buy near the lowest price. So, with this forexbrokerrebateprogram, traders always miss the beginning of the price change and miss the important stage of profit taking, knowing that the signal to close the position is received. Many traders try to make money over and over again at any given time, which leads to the selection of cashback forex that follow trends faster and faster. While in some markets fast systems are usually more efficient than slow ones, in most markets the opposite is true, with slow systems reducing trading losses more than they reduce profits. The choice of the sensitivity of the system should be based on the experience of the trader and the respective purpose of the trading strategy is very diverse Below are the main strategies of this type Belowarethemainstrategiesofthekind: strategies based on moving averages When an up market is replaced by a down market, the price will cross the top of the moving average downwards Similarly, when a down market is replaced by an up market, the price crosses up with the bottom of the moving average. In most moving average systems, these crossovers are considered as trading signals. Breakout Strategy The basic concept under the breakout strategy is very simple: the ability of the market to reach a new high or low indicates a potential trend in the direction of the breakout. The system tends to attract the attention of investors who want to buy at the low or sell at the high during a counter trend, but unfortunately the complex task of solving it is not very attractive to the system. There is an important difference that we should be aware of: a system that follows a trend is self-correcting, while a counter trend system may Therefore, including a protective stop loss in a counter-trend system is a must. In addition, the system will maintain a long position throughout a long term downtrend or a short position throughout a long term uptrend The initial advantage of a counter-trend strategy is that it offers a different opportunity when using a follow-the-trend system at the same time Speaking of which, it must be mentioned that counter-trend systems are still liked, although often with a moderate loss of This is because, contrary to the trend-following system, the risk taken by using them together is smaller than using only one, and the possibility of making more money while taking the same risk is very high, even if the counter-trend system itself will have losses. Model recognition of price behavior All systems can, in a sense, be classified as model recognition systems. However, this means that as trend-following or counter-trending systems, the choice of model is not first based on the direction of the price trend when it comes to deciding on a trade, such systems may sometimes use models. It is worth noting that the above strategy cannot be clearly distinguished from other types of systems after the modification. Trading in the channel Trading in the channel means determining the trend of the trade based on the resistance and support lines, which are the boundaries of the channel This strategy is very useful for sideways movements, but almost useless for uptrends and downtrends Trading in the channel is shown in the figure below Once the price reaches the channels boundary and jumps back in the opposite direction, a new long position should be opened immediately. The advantage of this type of trading is that when there is a continuous sideways movement, the maximum benefit can be obtained by opening and closing positions several times. The main disadvantage is that once the channel is broken, unpredictable losses can occur.