TOP 3 Forex Strategies That Works
Support & Resistance
This strategy follows the old business cliché, “buy low and sell high.” Forex traders quantify the levels of how low is a price’s low and how high its high is by analyzing areas where prices have stopped and changed direction.
The support refers to the level where the price rarely falls below before turning around, and the number of buyers exceeds that of sellers hence causing the price to rise. On the other hand, the resistance is the level where price rarely exceeds, and the number of sellers exceeds that of buys hence lowering the price down. In both cases, the price stops and turns around.
Preferable timeframe: 1h
Pinnocchio Strategy
A Pinnocchio bar is a candlestick bar that has a very small body and a very long wick (nose). It is also called Shooting Star, Hanging Man and Gammer. You may remember that Pinnochio's nose grew long when he was lying. The same happens with this strategy: when the wick is longer than the body, this tells us that the market is deceiving us and that we should trade the opposite way.
The entry point varies: some traders prefer to wait for the next candle to retrace to the 50% Fi-bonacci level of the Pin bar, while others enter immediately after the Pin bar closes. A long wich indicated strong selling pressure; a long tail suggest intense buying power.
Preferable timeframe: 1h, 4h
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The Double Red Strategy
The double - red strategy is a short term reversal system based on price action and resistance. The trade is planned on a 5-minute chart and is signaled when two bearish candles form fol-lowing a test of resistance.
How to protfit?
Choose an asset and watch the market until you see the first red bar. Then wait for a second red bar.
If the second red bar closes lower than the first red bar, then it's a jackpot.
Usually, what happens is that the third bar will go even lower than the second bar. This is the point where you should open a short position.
Preferable timeframe: 5min
