Forex Day Trading Strategy
Day trading or intraday is a daily trading model that is often used by traders. Of course, intraday trading is different from long term technique. Where the long-term technique must be patient to reap the trading results. Intraday forex trading opens and closes on the same day, traders can make profit or loss on the same day. If you experience a loss, it will not drag on. Various kinds of forex strategies that can be applied, often make traders confused in determining the appropriate strategy. The following strategies are suitable to be applied to the H1 and H4 time frames, namely:
Trend Following
This strategy involves identifying the price trend on the chart and acting on it. The recommended trend following strategy is Roman Sadowki from humble traders, using a combination of EMA lines.
News Trading
Trading is also heavily influenced by economic, political and other news. One of them the price will have a significant impact on new news releases, and get a great opportunity for intraday trading.
Considering the entry, it is advisable to wait and see if the news is actually published so that the initial effects can subside. The process of waiting about 15-30 minutes after the news release, then planning the entry position with price action.
scalping
Basically a scalping strategy to seek profit from every smallest price movement that is in line with the main implementation of intraday trading. An easy step in scalping is to determine the direction of the trend, look for momentum and look for exit levels according to risk management. The indicators used for scalping include MA, CCI, and others.
Trading Range
Range trading provides convenience in trading in sideways markets, occurs when price movements tend to adhere to support and resistance limits. If you already know the support and resistance, it is not difficult to plan the entry and exit positions.
To get the ideal support and resistance limits is not easy, considering that the determination is often subjective. The alternative can be to monitor the high-low price movement yourself, then apply it to Fibonacci or rely on pivot points. It is recommended for day trading to be carried out at the right time for example in the Asian session, as market liquidity is relatively low against price volatility.
Swing Strategy
To carry out a swing strategy, an understanding of the price pattern theory is needed, where the swing change signal is formed from the initial price identified by looking at the price patterns formed on the chart. Price pattern analysis is used to detect changes in price direction, and is formed on the chart above (triangle) or breakout patterns. The direction of the breakout is the EMA cross which indicates a sell signal.
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