The projected volume of those who do forex trading is at $6.6 trillion. This figure exceeds the volume traded all across the stock markets. This is why there are a lot who flock to the forex market every day. However, statistics show that there is an overwhelming figure of traders losing money. Visibly, this happens due to lack of strategies and skills in trading and in managing money which are time tested. 2020 has been proven to be tough on fpreign exchange and all other markets that relate to finances. Yet, it has also opened opportunities to revise many systems and approaches in trading for 2021 that are proven efficient.
Volume- Weighted Average Price
VWAP is a firm foundation for an intraday strategy
It is an indicator that is thought to be greater than many other tools in charting because it takes account both the currency price and the trading volume. It is computed by multiplying the total price by the volume of trading and dividing that number by the total volume.
Including the volume in computations is what makes the VWAP a powerful indicator. The rule in applying VWAP is simple. The trader must prefer long trades when the price movements take place above the gauge and think through taking short trades when the value drops below the line. Yet, remember that it must be included in the forex trading strategy for just a single day as it reboots daily before the market opens. Thus, to avoid building up mid and long term trading techniques on forex.
Monday Open
Trade in the market once a week. Cluttering your trading panel with several indicators may make a trader look smart, yet it would eventually do more harm for his performance rather than good, since most of the tools are lagging and giving false signals.
Nonetheless, there is a forex technique for positional trading which is nor require indicators as it is making use of just a candlestick chart or a clear bar. This strategy releases the traders the obligation to stare at the monitor through the weekdays as it indicates the execution of one or just a fews trades on Mondays, just after the market opening. Reasonably, this technique is only suitable for the daily timeframe, and it undoubtedly works best in the market of EUR/USD.
The concept in this strategy is not actually complicated. On Monday, about 15 minutes after the forex market gets busy, a trader must initiate the position in the opposite direction of the candlestick from last Friday. For instance, if a trader takes a long position on Monday in the market of EUR/USD currency, he would have profited an amount of 125 to 205 pips the following Monday.
Grid Trading
Arranging the order in a grid with intervals that are individually set has already been considered as one of the best strategies in forex. The essence of this approach is quite simple. The trader will place the related orders above and below the prearrange price level.
The best thing regarding this strategy is that it infrequently requires massive analysis of where a specific foreign exchange market is going.
