If you do a search online, you will be able to find thousands of different Forex strategies. There are many different methods that you can pick from that range from indicator based to fully volume based. When you are picking a Forex strategy that suits you, you want to keep one thing in mind. Almost all professional Forex traders use support and resistance as a huge part of their strategy. Most new traders overlook support and resistance because they consider it basic and too simple. Well the professionals would definitely disagree!
Support and resistance is what makes the market. They are areas of interest in the marketplace that people will watch over and over again. When there are a lot of people watching a certain level, it becomes very likely that price will have a strong reaction in that area. You want to have a strategy that can take advantage of these strong reactions.
Most importantly is the fact that the good support and resistance levels are watched very closely by huge hedge funds and banks. Trust me, if they are watching these areas, you want to be too. As traders with much smaller accounts than the billion dollar funds, we can’t control the market at all. So what we need to do is know where the bigger players are placing their orders so we can place trades in the same direction as them!
The key to succeeding in Forex trading is to find a Forex trading strategy that makes use of support and resistance very heavily. There are many different ways to do this. Some strategies simply take touch trades off of certain levels while others wait for confirmation at these support and resistance levels before they place Forex trades. Each strategy will have its advantages and disadvantages and the key is to finding one that is most comfortable for you and suits your personality.
With so many options out there, it can be tough and overwhelming to find a Forex strategy that suits you and is also profitable. You will make it much easier however if you have an idea of what to look for. Avoiding indicator based systems will save you a lot of time in searching for a profitable strategy. So when you are looking for a Forex strategy that will make you a lot of money, make sure the strategy uses support and resistance! Do this and you will have a much better chance of being on track of becoming a professional trader.
Forex trading is my passion and is something that I will be doing for the long haul. I would love to help any aspiring traders reach their dreams as well so visit my site and check out my Forex trades.
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