Best Forex Strategy For Consistent Profits
The secret to success for every forex trader’s success is their strategy for trading. There are many strategies for trading. However, the best strategy is one that is profitable for the majority of times it is employed (Best Forex Strategy for Consistent Profits). An investor first seeks out the most effective Forex trading method that fits their style of trading. After they’ve found the right strategy, they continue to test until they are completely satisfied. the results are reliable and consistent. The strategy for trading should be consistent in executing profitable trades and is able to work in a variety of market conditions.
The strategy of trading in its entirety is a mix of indicators and technical tools along with effective money management. The central element of the method is an indicator. We will look at different trading techniques that are regarded as trustworthy and used by the majority of traders. These strategies are effective in nearly all market conditions and offer traders the greatest flexibility.
The most successful traders recognize that there isn’t a single trading strategy that will earn profits each when they make a trade. However, they recognize and accept that a fair winning rate is sufficient to generate good profits on the market for forex.
What is the most reliable Forex Strategy?
Successful traders add an additional factor to their trading strategies that is different from other strategies. It’s the top-down method. The traders look at a bigger image or a bigger trend first. For analytical techniques, the top-down strategy is applied to more advanced time frames. Successful traders study the charts of higher time frames first. When they spot an emerging trend on the charts with higher time frames they then formulate their strategies to invest in the direction they see. If a trader recognizes the direction of the trend as bullish on the higher time frame. In that scenario they would place buy trades and stay in that direction until close of that trend.
However, in order to determine the ideal starting point as well as the best exit precisely they employ a shorter timeline chart. Trades will appear into the smaller time frame charts to follow the trend that is evident in more time-frame charts. The entry and exit points using small time frames allow traders to identify precise exits and entry points in the longer timing frame. Successful traders will never put any trade counters to the trade they have identified, regardless of the quality of the counter trader’s possibility.
The trader is trading a higher timeframe chart, and benefits from larger trend movements. But, the signals are coming from a smaller timeframe, with the tighter stop loss.
The following strategies for trading can be used to trade using an approach that is top-down. The strategies listed below are well-known and used by traders as profitable trading strategies. The outcomes of these strategies can be improved further by employing the top-down approach.
EMA The EMA Over – Very Easy and Effective Trading Strategy for Mt4
A EMA cross is an efficient and profitable trading technique Mt4. The majority of traders employ Moving averages due to their simplicity and precision. The EMA is an Exponential Moving Average responds more quickly and lessens the time lag that is that is associated with moving averages. The EMA provides more weightage to the most recent price fluctuations and is considered to be a reliable indicator.
A common moving average crossover technique employs two moving averages, namely a fast-moving average and a slow-moving. If the fast moving average crosses the slow-moving average towards the upwards. In this case it suggests an upward trend, and if the crossover is downwards, then we can expect an eventual downtrend.
In the next chart Let’s look at how using the top-down approach to determine the most effective entry and exit locations.
This Daily EURUSD chart spans starting at 22.04.2020 until 22.01.2022. It is noted that the 200 EMA ( blue lines ) is crossing that of the 50 EMA ( Redline ) upwards on 11.06.2020 which indicates the impending upward trend. When a trader recognizes this EMA Bullish crossover, then decides to only place Buy trades to get into the trend and keep the trend in place.
The trader is now looking for an exact entry by using the chart with a lower time frame. Entry entries are only made within the Bullish direction, the trader will not consider any trading to the downside. that is trading from now on will put all BUY signals on lower time frame chart, and will ignore all signals for SELL.
The chart below depicts an H1 chart for EURUSD starting on May 12th, 2020 until 17 July 2020. It is component of the EURUSD D1 chart. Making sure to only place trades that are BUY will allow the trader to gain substantial profit.
The chart above illustrates the EURUSD M30 chart, which spans from 12th May 2020 until 15th June 2020, which is a tiny part within charting the EURUSD D1 chart. The trader may get as low as M30 chart to pinpoint specific entry points in order to track the most significant trend from the chart of D1. In addition, the trader does not consider any signals for selling and will only take into account Buy signals.
It is crucial to remember that many traders employ charting with lower timeframes, like M15, but the lower timeframe charts can offer whipsaws.
Moving Average Convergence and Divergence MACD The Most Accurate Forex Strategy
MACD is traded using various ways. The MACD crossovers of the ZERO line and MACD signal line, MACD signal line and the divergence and convergence. No matter what method of trading, MACD is considered very trusted by a lot of traders. MACD is an integral part of numerous automated trading systems.
But, we will employ the Top-down approach to find both the exit and entry points in order to create profitable trading by using some examples.
The chart below is an EURUSD D1 chart that spans from 04 November 2020 until 11 January 2021. The MACD was over that Zero line, and the signal line crossing, signalling an upward trend, and warranting an investment. The trader will now choose to go with the bulls and accept any of the only BUY positions.
Above EURUSD H1 chart from 8th Dec 2020 to 21st December 2020 that is shown is element of EURUSD D1 chart. The trader will not pay attention to signals for selling from the MACD and only trade the BUY signals since the chart with a higher timeframe shows an upward trend in the direction of BUY. It is evident this way. BUY trades could have been highly profitable in the hands of the trader. The BUY opportunity that occurred on the 11th December and 14th Dec could be lucrative as well as the signal of the 14th Dec proved to be a success.
Above MACD M30 chart is in that EURUSD D1 zone. It also provides a variety of trading options for on the BUY side. The trader can ignore SELL signals and concentrate only on trading the signals for BUY, and be extremely profitable. They also have a higher chance of success and risk since they are aligned with the more pronounced temporal trend.
Bollinger Bands A Simple Profitable Forex Trading Strategy:
Bollinger Bands is an excellent indicator to follow trends. Many traders who trade in trend use them to determine trends and to determine the trends’ direction as well as the volatility of the market through the use of the bands. The direction of the band gives directions and entry points, but their contraction indicates a possible market movement. The wider band indicates volatility, while markets that are ranging tend to have smaller bands. The bands on the outside act as a source of support and resistance as well as to help identify areas for exits . The results from trading with Bollinger bands could yield better outcomes when coupled with the Top-Down method.