The Currency Market is regarded as one of the largest financial markets due to massive trading volume per day. Such type of market is open to all types of traders all over the world since trading deals can be done through an OTC (over-the-counter) network.
In this type of market, participants are free to buy, sell, exchange and take a chance on currencies. It has unique attributes and properties wherein investors become attracted to it since it can open opportunities for optimizing profits. Yet, it takes to know and apply an effective strategy to be able to reach your financial objectives in this market. In this article you can learn one of the most advisable currency exchange trading strategies recommended by experts.
The Need for an Effective Strategy
Not all created strategies apply to all existing markets. There are particular strategies that do better than the others. An individual trader must be able to discern a strategy that suits him and help him outlive the currency market.
It is true that markets have their own characteristics. Its major characteristics are as follows – it is highly liquid, it is open 24 hours per day except during weekends, and has the highest forms of leverage that both traders and investors can utilize.
Simply maintaining discipline when doing trading is important, yet it does not guarantee success. Hence, employing an effective strategy is vital – one that is tested and you can count on while you maintain the needed discipline in the field.
Picking the Right Strategy
When talking about currency exchange strategies, deciding on a specific trading method to carry out your trading plan is a must. Trading strategies help you determine advantageous entry signals that you can make the most of.
Considering the Bladerunner Trading Method
If you are looking for a strategy that works across all time frames and currency pairs, the Bladerunner is considered to be exceptionally good. Experts say that it is by some means considered as one of the best and easiest trading strategies.
This strategy depends on pure Price Action to be able to locate entries, which means that a trader tries to identify price action patterns. When using this one, candlesticks, pivot points, round numbers, support and resistance levels are brought into play.
It uses the 20-day EMA (Exponential Moving Average; a reference point for price action). The strategy is termed as Bladerunner for the reason that the 20 EMA represents a knife dividing a price. The bladerunner trader depends on the charts and then compares the real price action to be able to adjust their trades correspondingly. It simply means that when the current price action is beyond the EMA, chances are, it will drop soon and vice versa.
The crucial entry factor for this strategy is when there has been a break out of price from the consolidation or range before making a move, which means that the price must be trending. Moreover, monitoring news and announcements is really helpful. The most important thing to consider is to always trade with the current trend’s direction. You can simply know this by identifying the current price’s EMA or polarity indicator.
Considering a number of factors in the currency markets, an investor must remember that market volatility is inevitable. One sure way to surpass market turbulence is to be equipped with the necessary knowledge you need when doing trading with your choice of assets or securities. Having an adequate knowledge is necessary for you to predict the succeeding price movement – and be on the advantageous side.
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