Fx Day Trading Strategies - Forex Trading Strategies a Simple One for Big Profits in 30 Minutes a Day

Fx Day Trading Strategies

Fx Day Trading Strategies

If you are new to Forex trading and you want to learn Forex trading strategies which can lead you to success, you should consider the one enclosed in this article. Not only is it simple and easy to learn, it can also make you huge gains. Let's look at the strategy in more detail and how it can make you a huge income for just 30 minutes work per day.

The Forex trading strategy we will look at here is caught swing trading and swing trading is all about trading markets that have moved to overbought or oversold levels. On a chart sharp price spikes always occur away from the underlying trend and they all end quickly as prices return to fair value - what causes these price spikes?

The answer is greed and fear, greed pushes prices to far up and fear pushes prices to far down, once reality sets in the price comes back. This is a simple to understand concept and below, we will look at how to swing trade correctly. In our example, we will look at swing trading in terms of a bullish market, although the same logic works in a bear market.

Look out for a price spike which occurs on high volatility and check how overbought the market has become.

To check how overbought the market is, you need to check some momentum Indicators. Fx Day Trading Strategies

These indicators will instantly tell you how overbought the market is and if it is overbought you wait for a turn down in momentum while prices are still moving up. This is known as divergence and is telling you, a reaction to the price spike is about to occur and prices will fall, so you simply go short.

Note: There are a lot of FX momentum osilators but only use a couple or you will generate false signals - we like the stochastic, MACD, Relative Strength Index and the ADX but there are many others, try a few combinations and see which you like best and the good news is you can learn to use them all quickly.

Once you have entered your swing trade, place your stop and look for an area to take profit which should be above and NOT right at a level of support. You want to get out early, because if you hold your trade for the test of support, you could get a bounce back against you.

Always keep in mind, when swing trading you only want to trade strong prices spikes which occur on high volatility and the more overbought the market becomes, the better the potential profit from falls in price will be. Fx Day Trading Strategies

Fx Day Trading Strategies - Forex Trading Strategies a Simple One for Big Profits in 30 Minutes a Day

By: Forex Expert

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