Top 5 Forex Trading Strategies Every Beginner Should Know
Starting your forex journey without a strategy is like sailing without a compass. Here are 5 beginner-friendly forex trading strategies to help you build a solid foundation:
1. Trend Following
This strategy involves identifying and following the direction of the market trend. "The trend is your friend" is a golden rule in forex.
2. Breakout Trading
Look for key levels of support and resistance. When price breaks out, it often starts a new trend.
3. Moving Average Crossover
Use two moving averages (e.g., 50-day and 200-day). A crossover signals potential entry/exit points.
4. RSI (Relative Strength Index)
Use RSI to identify overbought or oversold conditions. An RSI above 70 = overbought; below 30 = oversold.
5. Price Action Trading
Focus on candlestick patterns and chart formations rather than indicators.
Remember: No strategy works 100% of the time. Always test your strategy on a demo account before going live.