Dec 19 2019 7
It sounds unbelievable, but when I first found out, there are many trading strategies that do not use candlestick patterns to trade the market. Many traders consider price action to be the most important information in the market, so if you remove the candlestick pattern and trade only with other information like indicator, will you be successful? Now, let me introduce you to 4 forex successful trading strategies right now:
50 Pips a day forex strategy
Basically, when the 10-period EMA crosses the 26-stage EMA and goes up, it is an uptrend. When the 10 EMA crosses the 26 EMA and turns down, it is a downtrend.
We already know that GBPJPY is a fairly elastic pair and sometimes the price fluctuates to 100-200 pips within a day. So our goal is not to keep track of all price movements during the day, but only as a fraction, for example, 50 pips. And this is also the core of the 50 pip a Day forex strategy to share with you.
You also need to know one more component: the Traders action zone. This is a reversible price zone so it is also a sell or buy area depending on what the current market is. For example, if the main trend of the market is going down, there will be times when you see prices rising (although the main trend is still down), which is the rare recovery of prices in a downtrend. The moment when that price rebounds will most likely end in the Trader's working zone, when you see prices fall back and follow the main trend line.
The opposite is also the case when the market is in a rising trend. You will see there are times when prices drop but they are temporary. As soon as the price touches Trader's range, it will rise again and follow the main trend.
In case you're interested:
- Price action strategy - it's really good
- One minute strategy - all the basics
- Swing trading strategy - consider perfect for newcomers
Transactions use only line chart according to WhaM model
This is a very unique strategy by abandoning the candlestick pattern and switching to line chart entry or exit. The two typical models of this system are the first 2 letters according to the system name, characters W and M.
Pattern types like W or M can be explained in a market sentiment way: W or M are the minimal forms of the double top or double bottom model you often use. Use to trade according to the price model. This best forex strategy is only slightly improved from the traditional price model, which allows the price to breakout and go back to "check" the neck line the model has formed.
Strategies using exotic candle charts: Heiken Ashi, Kagi, Renko
If you love Japan, often use Japanese goods and watch Japanese movies like you, you probably know that in addition to the traditional candle model, the Japanese also create many useful candle models to trade on the market. In this article I just briefly introduced to you to know that there are better graphs than candlestick pattern. Do not focus too much on candlestick charts, you may lose a lot of opportunities to learn interesting knowledge to analyze the market to execute strategies like Position trading, Day trading, Swing trading...
Transactions use Market Profile to analyze markets
This is a method that does not literally use candlestick charts. You do not use candlestick charts, nor do you use any type of chart to study prices. Traders who use the Market Profile believe in the remaining important market information - the volume. This is definitely one of the 4 forex successful trading strategies.