Establishing a Special Strategy for Forex

Unfortunately, it does not exist in Forex any secrets easily accessible and that will bring you a quick profit. Will soon realize that the only way to create a strategy Forex trading (OTC) profitable in the Forex markets is through personal effort and that undoubtedly must include study of the experience of others in this area. During the past several traders developed a tremendous amount of strategies to help them identify entry and exit points in the new



trades. There is no doubt that you know that the main goal of any Forex strategy is to identify entry and exit points in the so-called cable "bear and bull" that last for days, if not weeks. A lot of automated Forex software designers (Forex ROBOTS) and advisers prefer to use scalping strategies, which typically rely on short time frames, but will be allocated another article talking about this topic.




From a broad perspective, the Forex markets following the equity markets, and that in turn respond to the global economic events. When the index rises, "Dow Jones", the linked currencies of the Euro and the British pound move upward, while usually the U.S. dollar and the Japanese yen fall. And as you know, no doubt, the stock market declines because of the bad news, and rises because of the good news. Forex trading systems have been designed by two key elements fundamental analysis, and technical analysis. In an ideal situation, it must use both of analyses to what extent when creating Forex trading strategy, and following is an example of this:

1 - Find the economic person has a good track record in the field anticipate events that affect currency markets.

2 - Compare their basic outlook with technical drawings for the relevant currency pairs for compatibility. This is best done form through the use of the hourly time frame or longer because the accompanying statistics are much more accurate than that associated with shorter time periods. In addition, it provides a much clearer overview of the overall situation because the technical analysis mainly aims to study the currency rates for a period of time to try to know trends and patterns.

3 - No obvious correlation, which is found during the previous point, which determines entry or exit points possible channel bull or bear.

4 - If a positive result of point 3, enter the circulation.

5 - Watch any trading or declines possible exit points using both fundamental and technical analysis.

However, please note that this simple system is incomplete and still need to be attached to the full Forex strategy by incorporating other important components such as money management.


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