If you just started trading and looking for a winning strategy to trade, I prepared for you 4 simple and profitable forex trading strategies for beginners.
1. Harmonic Strategy
With that strategy, you will trade harmonic patterns.
Here is the list of the most powerful ones:
Bullish/Bearish Gartley pattern, Bullish/Bearish Bat pattern and Bullish/Bearish Cypher pattern.
To properly apply the Harmonic Strategy you should learn just 3 things: Fibonacci numbers, impulse legs and the rules of harmonic patterns.
That strategy is very simple: it works on any time frame and your only task is to recognize the harmonic pattern and trade it strictly following the rules.
2. Trend Following Strategy
That strategy is price action based.
To properly apply that, you should learn trend analysis rules and how to identify price action legs.
Once you spotted that the market is trading in a bullish/bearish trend, your task will be to wait for a completion of a correctional movement to buy/sell the market expecting a trend continuation.
That strategy works on any time frame, however, my recommendation is to trade 4H time frame or higher.
3. Structure Breakout Strategy
That strategy is based on structure analysis.
To properly apply Breakout Strategy, you should learn to identify key vertical and horizontal structures: supports and resistances.
Your task will be to look for a confirmed structure violation with a candle close beyond that.
Bullish breakout of a key resistance will be a signal for you to buy, expecting a bullish movement to the next resistance, while a bearish breakout of support will push the prices lower to the next structure support.
That strategy works on any time frame, however, my recommendation is to trade 4H time frame or higher.
4. Trend Reversal Strategy
That strategy is price action based.
To use it properly, you should learn trend analysis and trend reversal rules.
Your task will be to look for a confirmed trend reversal. It will lead to an initiate of a new trade and give you a perfect opportunity to catch an extended movement.
What I like about these strategies, is that while you trade with them, you master structure and price action analysis. 2 essential components of any sophisticated professional strategy.
Master one of these strategies and then modify that with experience, adding some extra layers of analysis.
Let me know which strategy do you like the most?
