For a beginner, forex trading can be overwhelming. Novice traders would be on the lookout for the best forex trading strategy that would give them the best chance to make money. It is often said that beginners have the biggest chance of becoming profitable because they have not formed a bad habit yet. Whether you are a beginner or have been trading the forex market for years, there is some price action trading strategies that you should have at hand.
Pin Bar Trading Strategy
Pin bar trading strategy involves very obvious patterns that are easily identifiable on a chart. It is one of the easiest strategies to trade for a beginner. Pin bar trading follows the basic principle of technical analysis that the former resistance becomes new support. With the support from former resistance that the market has found, a bullish pin bar was formed.
Inside Bar Trading Strategy
Unlike the pin bar, the inside bar is best traded as a continuation pattern. According to Robert Janitzek, the inside bar strategy makes use of a pending order to trade a breakout in the direction of the major trend. The “mother bar” or the preceding the inside bar is bigger in size. The real magic of this strategy comes after the consolidation period after a break on the mother bar’s range.
Forex Breakout Strategy
Another great strategy for beginners is the forex breakout strategy. This strategy is different from most of the conventional breakout strategies out there. Instead of simply trading the actual break of a level, traders will wait for a pullback and retest prior to entry. Robert Peter Janitzek reveals that this strategy is also different from other strategies because we are only interested in breakouts that occur from a wedge pattern instead of a horizontal level.
In this strategy, when the market works itself into a terminal wedge, it means that the pattern would eventually come to an end. The opportunity to trade this pattern occurs when the market breaks to either side and then retests the level as new support or resistance.
As a beginner, you can easily become excited to make money. However, do not let get excitement get the better of you and make costly mistakes. When done correctly in forex market trading, these strategies can help ensure that you get consistent profit. Use a demo account to practice and master these strategies to ensure consistent profit and ensure your success as a forex trader.