JRFX Forex player
Active member
1. Trend following strategy:
Trend following is a trading strategy based on market trends. Traders will buy or sell based on market movements. They use technical analysis tools to confirm trends and hold positions while the trend continues until the trend reverses.
Suitable technical indicators:
- Moving average: Smooth price fluctuations and determine the trend direction of the market by calculating the average price over a period of time.
- Relative Strength Index: Measures the overbought and oversold conditions of the market and helps determine whether the market trend deviates from normal levels.
- Average trend indicator: measures the strength of the market trend and helps confirm whether the trend is sustainable.
Practical case:
When the price rises and the moving average shows an upward trend, the intersection crosses upward, the relative strength indicator exceeds 70, and the average trend indicator shows that the trend strength is high, you can consider entering the market to go long.
2. Reversal strategy:
The reversal strategy is a trading strategy based on market reversal. When the market becomes overbought or oversold, traders take opposite positions. For example, when the market is overbought, traders may sell in the hope that the price will reverse downward.
Suitable technical indicators:
- Stochastic indicator: measures the overbought and oversold conditions of the market. When the indicator enters the overbought or oversold zone, a price reversal may occur.
- Counter-trend indicators: such as market sentiment indicators, such as the long-short ratio of speculative traders. When the long ratio becomes too high, a price reversal may occur.
Practical case:
When the price is obviously overbought or oversold, the stochastic indicator exceeds 80 or is below 20, and the contrarian indicator shows that market sentiment is biased to one side, you can consider reversal trading.
3. Breakout Strategy:
A breakout strategy is a trading strategy based on the market breaking through key price levels. Traders watch the price for support and resistance levels and enter positions when the price breaks through these levels. For example, when price breaks through a resistance level, traders may buy in the expectation that the price will continue to rise.
Suitable technical indicators:
- Bollinger Bands: The upper and lower limits of the price are determined by calculating the standard deviation of the price. When the price breaks through the Bollinger Bands, a price breakthrough may occur.
- Moving Average Breakout: A price breakout may occur when the short-term moving average breaks above the long-term moving average.
Practical case:
When the price breaks through the upper or lower Bollinger Band, accompanied by large trading volume, and the moving average crosses, you can consider entering the market to go long or short.
When using these technical indicators, traders can combine price chart patterns with other technical analysis tools for comprehensive analysis. Additionally, setting stop loss and profit targets is key to controlling risk and protecting profits.
Forex trading strategy signal channel: https://t.me/jrfxasia2024
Get free bonuses on the foreign exchange platform: https://www.jrfx.com/2024/april/en/?396
Trend following is a trading strategy based on market trends. Traders will buy or sell based on market movements. They use technical analysis tools to confirm trends and hold positions while the trend continues until the trend reverses.
Suitable technical indicators:
- Moving average: Smooth price fluctuations and determine the trend direction of the market by calculating the average price over a period of time.
- Relative Strength Index: Measures the overbought and oversold conditions of the market and helps determine whether the market trend deviates from normal levels.
- Average trend indicator: measures the strength of the market trend and helps confirm whether the trend is sustainable.
Practical case:
When the price rises and the moving average shows an upward trend, the intersection crosses upward, the relative strength indicator exceeds 70, and the average trend indicator shows that the trend strength is high, you can consider entering the market to go long.
2. Reversal strategy:
The reversal strategy is a trading strategy based on market reversal. When the market becomes overbought or oversold, traders take opposite positions. For example, when the market is overbought, traders may sell in the hope that the price will reverse downward.
Suitable technical indicators:
- Stochastic indicator: measures the overbought and oversold conditions of the market. When the indicator enters the overbought or oversold zone, a price reversal may occur.
- Counter-trend indicators: such as market sentiment indicators, such as the long-short ratio of speculative traders. When the long ratio becomes too high, a price reversal may occur.
Practical case:
When the price is obviously overbought or oversold, the stochastic indicator exceeds 80 or is below 20, and the contrarian indicator shows that market sentiment is biased to one side, you can consider reversal trading.
3. Breakout Strategy:
A breakout strategy is a trading strategy based on the market breaking through key price levels. Traders watch the price for support and resistance levels and enter positions when the price breaks through these levels. For example, when price breaks through a resistance level, traders may buy in the expectation that the price will continue to rise.
Suitable technical indicators:
- Bollinger Bands: The upper and lower limits of the price are determined by calculating the standard deviation of the price. When the price breaks through the Bollinger Bands, a price breakthrough may occur.
- Moving Average Breakout: A price breakout may occur when the short-term moving average breaks above the long-term moving average.
Practical case:
When the price breaks through the upper or lower Bollinger Band, accompanied by large trading volume, and the moving average crosses, you can consider entering the market to go long or short.
When using these technical indicators, traders can combine price chart patterns with other technical analysis tools for comprehensive analysis. Additionally, setting stop loss and profit targets is key to controlling risk and protecting profits.
Forex trading strategy signal channel: https://t.me/jrfxasia2024
Get free bonuses on the foreign exchange platform: https://www.jrfx.com/2024/april/en/?396
