Forex Strategy

Learn the Best Forex Trading Strategies

Forex strategies involve the combination of indicators and price patterns for the derivation of tradeable signals. There are also fx trading strategies based on fundamental factors, but all short term trading strategies must include some technical component. In this section we aim to explain in detail the various aspects of forex trading strategies, both based on fiundamental as well as technical analysis. A basic winning strategy for beginners can be found here in our Forex For Dummies.

  • Computing Swap Points

    The difference between the forward rate and the spot rate for a particular currency pair when expressed in pips is typically known as the swap points. Read More

  • The Best and the Worst Times to Trade Forex

    One of the biggest plusses that the foreign exchange market offers traders consists of the fact that currencies trade twenty four hours a day, five days a week. Read More

  • The Basics of Forex Swaps

    In the forex market, a foreign exchange swap is a two-part or "two-legged" currency transaction used to shift or "swap" the value date for a foreign exchange position to another date, often further out in the future. Read More


  • Forex Scalping - Extensive Guide on How to Scalp Forex

    Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their... Read More

  • Powerful FX Strategy: Range Expansion Reversal Strategy Part 1

    Have you ever thought about the daily range of a currency pair? If you have been trading for some time, you know that currency pairs tend to reach the extent of their daily range at some point in the New... Read More

  • Starting Out Trading Forex

    Public interest has steadily grown in the forex market since the relatively recent advent of online forex trading for retail clients. Most online forex brokers offer their proprietary trading software free of charge to their clients, as do some independent... Read More

  • Forex Broker Lots

    In the forex market, the term "lot" usually refers to the minimum transaction amount for a particular currency pair. Lot sizes will usually be expressed in terms of the base currency for that pair, but might also be denominated in U.S. Read More

  • Rollover Fees

    When keeping positions overnight while trading forex, you will inevitably come across the fee charged by your broker to perform rollovers. Read More

  • Trading Forex Versus Stocks

    The foreign exchange market has often been the market of choice for many savvy traders, commonly being preferred over bond, stock and commodity markets for its liquidity and other desirable characteristics. Read More

  • Where Forex Trades

    In general, the foreign exchange market has no centralized exchange, although futures on some currency pairs are traded on major exchanges like the Chicago International Monetary Market or IMM in the United States. Read More

  • The Carry Trade and Its Risks

    When considering taking on a carry trade position, a forex trader will first want to take into account the interest rate differential and their forecast for the currency pair over the desired time frame for the carry trade. Read More

  • Learning From Other Traders

    It stands to reason that a great deal of useful knowledge about trading forex and other markets can be gleaned from the experience of other traders. Read More

  • Common Myths About Forex Trading

    The forex trading market makes up the largest global marketplace and trades round the clock from Sunday night to Friday afternoon, trading somewhere on the order of trillions of dollars every day. Read More

  • Forex KISS - How Keeping It Simple Can Improve Your Bottom Line

    It's a phrase everyone knows - Keep It Simple Stupid [or Keep It Short and Simple]. However, forex KISS is better known than practiced. Part of this is because of marketing, as well as that ever-present "keep up with Mr.... Read More

  • Trading Pegged Currencies Low Risk Fixed Currency Trades

    A fixed or pegged currency is one where the currency’s value is matched to that of another asset. The asset may be a single currency, or it may be a basket. Read More

  • Exploiting Currency Options Expiries for Forex Trading

    Options are contracts that give the buyer the right to buy or sell an asset at a pre-specified time and price. In return, the seller receives a fee for writing the contract which is termed a premium. Read More

  • Currency Carry Trade - Let the Interest Rates do the Work

    Experience shows that the most important driver of currency trends is the interest rate differential of central banks. Many financial strategies attempt to capitalize on this knowledge, but the most basic and widespread strategy is the carry trade, see a... Read More

  • Forex Carry Trade Strategies

    In general, the forex trading strategy known as the "Carry Trade" refers to an increasingly widespread forex trading strategy that is usually implemented over longer term time frames and involves taking advantage of the interest rate differential prevailing between two currencies. Read More

  • Forex Compound Interest Effects

    Compound interest can really work for you when trading forex and can help you turn a decent trade into a great trade if it can be held over time. Read More

  • Forex Trading Words of Wisdom

    Over the years, many forex traders have found themselves in trading situations which have a tendency to repeat over time. A number of these situations have had the honor of meriting a trading maxim or adage from which a novice... Read More

  • Cross Rates and Cross Currency Pairs

    The forex market's most actively traded currency pairs all include the U.S. Dollar, and those pairs tend to be where the greatest liquidity exists in the forex market. Read More

  • Technical Strategies Based on Crossovers

    In this extensive article we will study the various kinds of crossovers and how to exploit, interpret and confirm them based on the interaction of indicators with the price and each other. Read More

  • Powerful FX Strategy: Range Expansion Reversal Strategy Part 2

    In “Part 1” of this two-part series, we outlined a very powerful forex trading strategy, commonly known as the “Range Expansion Reversal Strategy.” This strategy takes advantage of the tendency of markets to revert back to their mean average over time. Read More

  • Spot Market Versus Currency Futures Trading

    Currency futures trade in a completely different manner than the cash foreign exchange market where trading is done primarily in the spot and forward markets over an electronic and telephone network. Read More

  • Strategies for Trading Forex on News Releases

    One of the most interesting trading strategies that forex traders commonly employ is trading on economic news releases. Specifically, closely watched economic news items such as the United States' Non-Farm Payrolls and, Gross Domestic Product numbers tend to result in... Read More

  • Keep Your Focus on Success Not on Trading Perfectly

    Trying to be a perfect trader who makes money on every trade they take and who never makes mistakes will very likely only frustrate and perhaps even limit a trader needlessly. Read More

  • Trading Market Classifications

    Trading markets generally tend to fall into one of the two primary categories of trending and non-trending markets. Read More

  • Trend Trading Time Frames

    Several different possibilities exist for how to trade a freshly identified forex market trend. These strategies can vary significantly depending on the time frame that the directional trending movement in the exchange rate occurs within. Read More

  • Trading Trends in Forex

    One of the most popular sayings heard on Wall Street just has to be, "The trend is your friend". Read more forex trading words of wisdom. Read More

  • Trade Timing - How to Decide Entry/Exit Points

    If money management is one half of trading, determination of entry/exit points constitutes the other half. No amount of successful analysis will be useful if we can't determine good trigger points for our trades. Read More

  • Trading Managed Currencies - Exploiting Central Bank Policies to Make a Profit

    Managed currencies are those such as the Singapore and Hong Kong dollars, the Chinese yuan, the Russian ruble, where the Central bank doesn’t control the day-to-day fluctuations of the currency, but attempts to manage the direction of the trend by... Read More

  • How Professional Strategic Forex Traders Operate

    Those who have arrived at the enviable position of being a professional strategic forex trader for a major international bank or hedge fund tend to focus on taking advantage of longer term moves in the forex market. Read More

  • Predicting Market Extremes Using the Put/Call Ratio

    Options have long been popular with forex traders for hedging, for directional bets, maximizing profit or for more complex strategies that are out of the scope of this article, but over the years, the record of options trading for buyers... Read More

  • Trend Following - The Most Popular Strategy in all Financial Markets

    Trend following is perhaps the most popular long-term strategy in all financial markets. It is exceedingly effective and profitable when the conditions are favorable, is quite straightforward in its methodology, and there are many individuals, past and present, famous or... Read More

  • Trend Reversals in the Currency Market: How to Time them?

    As traders, we are continuously told by veterans not to try to time markets due to the great risks involved. It is a fact that if you make a sizable commitment in either direction and the market fails to act... Read More

  • Essential Forex Trading Terminology

    Like many specialized professional fields, the forex market has developed and commonly uses a set of brief terms or phrases that together form the set of forex trading jargon terms. Read More

  • The 24 Hour Forex Market

    One of the main reasons the forex market has become so popular, especially now that retail accounts are available for online trading via forex brokers, is the fact that the market trades continuously 24 hours per day, five days a week. Read More

  • How to Become a Forex Trader - The Simple Three Step Guide

    Forex is one of the most volatile type of investment markets and one of the most exhilarating experiences in the world. Forex, in it's nebulous form, is simply trading currencies-buying and selling, betting for and against the various currencies of nations. Read More

  • What Kind of Stop-Loss Order Should a Trader Use?

    In this article we will discuss the various ways to implement a stop loss order. Every trader who has had dealings in any of the financial markets is familiar with placing and executing a stop loss order, but many are... Read More

  • Less Can be More When Trading Forex

    A good reason to consider trading forex involves the relatively low learning curve involved in trading the various currency pairs. Read More

  • Using the COT Reports to Predict Forex Price Movements

    Before examining the COT reports and a few ways of using them, let us note two important details: Read More

  • Short Term Forex Trading Strategies

    Forex trading can encompass a wide range of different trading strategies and techniques. Read More

  • Diversifying Your Portfolio With Foreign Currencies

    Portfolio diversification consists of an investment strategy which basically spreads risk among a number of different types of investments. Read More

  • Trading Strategy 101 - Cut Losses Short, Let Profits Run On

    Perhaps one of the most time honored and popular sayings among forex traders has a number of variations along the lines of the following words of wisdom: Read More

  • How to Create a Forex Strategy Based on Technical Analysis

    Technical strategies aim to predict future prices on the basis of past developments. All that the technical analyst is interested in is the price, and news, or data have no bearing on his decisions. Read More

  • Taking Out Stops in the Forex Market

    Many traders new to the forex market tend to think that because the market is so huge - with trillions of dollars traded per day - that it cannot be easily manipulated. Read More

  • Trading Forex with Multiple Time Frames

    Choosing an appropriate time frame is one of the basic decisions for forex. Time frame refers to the width of the window in which you'll trade. Read More

  • Key Tips for Forex Trading Success

    Anyone can get lucky trading forex a couple of times, since exchange rates can fluctuate up and down with roughly equal probability. Nevertheless, forex trading needs to be approached in a highly-disciplined manner in order to achieve optimum results over... Read More

  • Cross Rate Trading Strategies

    Trading in cross currency pairs offers significant opportunities to the forex trader. Read More

  • Forex Rollover Considerations

    The interest rate differential between a pair of currencies can either be your best friend or your worse enemy when trading forex since it affects forex rollover rates. Read More

  • How to Trade Forex Using Trends

    Trends simply help us anticipate market activity. This allows us to get into a trade early and ride the upward trend until the peak. It also prevents us from staying in a position too long and end up losing some gains. Read More

  • Getting Involved in Forex Day Trading

    Day Trading can offer a very exciting and lucrative way of trading the forex market for those who take the time to prepare appropriately for the endeavor. Read More

  • Top 10 Forex Exit Signals - Part 2

    In Part 1, we pointed out that one might regard forex as being somewhat simple: you just need to know which pair to trade, when to get in, and when to get out. Read More

  • Range Trading the Forex Market

    Range trading in foreign exchange involves the ubiquitous attempt by forex traders to "buy low and sell high." While this may appear very basic at first glance, doing so in practice can prove somewhat elusive. Read More

  • Assessing Forex Trading Risk With Volatility

    Many forex traders adjust their position size depending upon the risk that they perceive exists in trading a particular currency pair or time frame. Read More

  • The Forex Carry Trade

    A number of forex traders have heard of the carry trade and how its relative attractiveness can shift sizeable amounts of international investment funds from one currency into another. Read More

  • Top 10 Forex Entry Signals - Part 1

    With all of the complexity in forex trading, there is a very simple way to describe success. Almost everything boils down to choosing the right currency pair, entering the market at the right time, and knowing when to exit. Read More