Forex Trading Strategies

I am gonna be very direct with you guys, never pay for a forex strategy you found online. The reason is simple, if its really profitable, the person would never sell it or actually would avoid talking about it.

I also want to advise you about indicators. I have been trading stocks since I am 18 years old and forex since I am 20 and one thing I learned is that complicated technical indicators  are crap. MACD, stochastic, RSI are all lagging craps. How I know this? I coded probably a 100 robots to see if indicators can predict price movement, but nothing was very successful at it. The only thing I sometimes check is the moving average, but that is only to see a trend forming. I only trust support and resistance levels and price action.

So with some common sense, here are few forex trading strategies that have always worked, and that every knows about.

  1. Breakouts.  A breakout is when the price go suddenly in a direction, by breaking out of a certain price level (also called support / resistance levels). Here what you want to do is to follow the trend, and basically if price is going quickly up, you buy. You should them aim to take a profit at the next support/resistance level.  
  2. Rebounds. A price bounce, also called a contrarian stragey, is when the price is rebounding on a support or a resistance. In that case you will buy at the support (low price), and then sell at the next resistance (higher). I am actually a contrarian trader so that is the strategy I would suggest.
  3. Gap trading. This forex strategy consist of taking advantages of the market opening price difference on sundays. This do not always happen but when it does, it can be very profitable with a low risk ratio. Basically what you are going to do is bet that the gap (space between the price of friday at close and price at open on sunday) will close itself. The saying is that the markets hates voids, and thats why most gaps almost always end up closing. I am making a post just on gap trading and will also post a live youtube video of me trading the sunday gaps.