All Collections
Forex
Forex trading strategies
Forex trading strategies
Online Support avatar
Written by Online Support
Updated over a week ago

Forex trading strategies

Forex traders use FX trading strategies to guide their buying and selling activities. The ability to follow a strategy that informs a trader’s decisions is what differentiates trading from guesswork. Many traders create strategies by adopting elements from others’ trading strategies, but tailor the systems to meet their own specific needs.

A currency trading strategy often includes a number of forex signals and technical indicators. A forex trading signal can provide prompts to help determine entry and exit points for a given forex market. These signals can be determined by either manual or automated methods. Manual methods involve looking at chart patterns and averages to determine buy and sell opportunities. Automated methods use algorithms that determine trading signals and execute trades based on several pre-set conditions.

You can use numerous trading strategies to inform your trading decisions. Forex trading strategies, like other trading strategies, can be based on a combination of technical analysis and fundamental analysis. Technical and fundamental analysis are very different, so a blend of the two can be used to develop a more balanced trading strategy.

Many popular forex trading strategies, such as those outlined in our forex trading strategies guide, are based on chart patterns and mathematical formulas. Bear in mind that our forex strategies guide is not a definitive list, and just outlines some popular technical methods some experienced traders use. Other traders will trade based on macroeconomic forex news. This ‘big picture’ news tends to influence forex markets to a greater degree than any other factors. For example, news that suggests rising interest rates without a rise in inflation could increase the likelihood of a rise in currency value. By contrast, falling interest rates can increase the ease and likelihood of lending, but can devalue a nation’s currency in the long-term.

Did this answer your question?