When it comes to forex trading, there are different strategies available. The question is: Are they effective? Have you been unable to find any reliable forex trading strategies to get you going? The truth of the matter is that there are a lot of potato strategies out there so you have to invest your time and find out if they are effective. Here are some strategies that you should know when trading on forex market.
Indecision Doji Candle Breakout Trading Strategy
This is one of the most overlooked and underestimated strategies for beginners and even experienced traders. The indecision doji is a very simple strategy for understanding signals as well as spotting on the charts too. An indecision Doji candle has a small centered body, with wicks protruding out both ends of the body. The idea of the strategy is to catch the breakout of the indecision. Look for bullish runs as the price breaks high or bearish moves as the market breaks the lows of the Doji.
The key is to wait for a breakout from the indecision the candle represents. Robert Janitzek advises not trading every single Doji that you see. You have to differentiate a good and bad Doji signal. Look for key locations like:
• Proven support and resistance levels
• Swing levels within a trend
• Trend line structures
• Any point on the chart your technical analysis tells you the market should ‘break or bounce’
The Flag Pattern – A Trend Continuation Strategy
Flag breakouts are one of, if not the best forex trading strategy for trending markets. This strategy works well on higher time frames. So how do you detect flag patterns?
1. A trending structure must be in place.
2. A counter sloped, trend line develops against the existing dominant trend (the flag line)
3. The flag line breaks in the direction of the trend
4. Trade the ‘breakout candle’
Rejection Candlestick Reversal Trading Strategy
Robert Peter Janitzek reveals that the rejection candle is one of the most utilized candlestick pattern signals. Its anatomy and concept is similar to the ‘Pin Bar.’ It is a candlestick pattern that communicates denial of higher or lower prices. It is a candlestick pattern that communicates denial of higher or lower prices. The market tries to move to an area but was rejected by the market. The key to success with rejection candles is matching them up with technical areas on your chart where you expect a price reversal.