There are a couple of ways to trade the forex markets, mean reversals or momentum trading. Most trading strategies are a form of either of these two classifications. Between the two, momentum trading or trading with the trend is probably more popular. But what is it really?
Crossover strategies are a staple among many traders. This is probably because of its simplicity and its rules-based method. Though it is not perfect, but with the right parameters and filters it does work. However, as a trader, there will be many instances wherein you will miss your trading setup. You may be watching and waiting for a certain currency pair or trading instrument to crossover for some time, or you may be scanning your watchlist and notice that you’ve missed a crossover setup. Then you notice that price did rally going the direction of your trade and has started to trend. You end up just wishing you are on that trade, but you aren’t.
Crossover strategies are widely used among retail traders. This is because it is simple, easy to understand and implement, and doesn’t take much analysis. Anyone could do it. Beginners could jump straight into trading armed with a knowledge of a simple yet effective crossover strategy.
Heiken Ashi candles? What is it and how would it help us?Heiken Ashi candles are partly candlesticks, and partly indicators. Just as the original candlesticks, the Heiken Ashi candlesticks also come from Japan. Heiken Ashi in Japanese basically means average bars. This is where the Heiken Ashi candles sets itself apart from the regular Japanese candlesticks.
Divergence trading is one of trading’s hidden gems. Many newbie traders overlook this as it is not the most popular trading fad nowadays. But divergence trading, although it is not perfect, with the right oscillating indicator and the right strategy and filters, have been proven by many traders to yield a positive result on a trading account.
The market is like the ocean. It has waves that come and go that has different characteristics and sizes. Some waves are big, some are small, some waves come too often, other times the ocean is too quiet, big waves are nowhere to be found. Many people enjoy the waves as it passes under them, lifting up for a bit, then bringing them back down in between the waves’ trough. But there are people who are able to ride the big waves, the surfers, and they are the ones who have the most fun. As traders, we shouldn’t be like the regular folks who’d just rise a fall with the waves, we should learn to ride the big waves. That is where the money is.
Trading strategies need not be complicated. Even the most basic trading strategies could make money. All you need is a positive expectancy based on the mix of the strategies reward-risk ratio and its win percentage. If you’ve got this down, then you’ve won half the battle.
There are thousands of different indicators available in the trading world as of today. Among those, there will be rubbish indicators, while many could and would also work. You could even pick out any built-in trading indicator available on your trading platform and make it work for you.