Please share this daily profit forex trading strategy by liking it, tweeting it etc by clicking those sharing buttons below. Thanks for visiting my site. This means its an uptrend completely ignore the green histogram next thing is wait till you see a yellow arrow pointing up.

You could enter into the direction of the breakout right at the breakout point or after the price completes a pullback to the broken triangle line, shown by line 1. A stop loss should be placed just below the recent low 2 , and the profit target, shown by line 3 , should be equal to the height of the pattern projected from the breakout point. Many new traders are attracted to the Forex market because of the low minimum deposit requirements and the high leverage offered by Forex brokers.

This means that day trading is possible with little money.

Forex trade strategies and goals

Your free margin equals your equity minus the total margin used on all your open trades. Your trading platform should be able to calculate this automatically. Also, bear in mind that trading on very high leverage is risky.

Leverage increases both your profits and losses. Your position size should depend on the size of your stop-loss level. Just like trading in general, day trading is not simple to master. In fact, shorter-term trading styles, such as scalping and day trading, are often more difficult to learn than longer-term trading styles.

Most of the rules that apply to longer-term trading also apply to day trading, technical levels work the same and chart patterns are analysed in the same way across all timeframes. If you want to become a successful day trader, you must have a detailed trading plan and stick to it all the time. Also, try first to master a longer-term trading style before getting your feet wet in day trading. A common mistake among beginners is to start trading on very short timeframes and then move on to longer-term trading later on.

Day trading is not easy. Follow these points and avoid making common mistakes of traders new to day trading. All day trading strategies described above are based on pure price-action. However, you can successfully apply indicators to them to increase the success rate of trades, confirm a setup or filter through them. The RSI is a popular indicator among day traders. This momentum indicator measures the magnitude of recent price-moves and identifies overbought and oversold market conditions. When the value of the RSI indicator moves above 70, this signals an overbought market consider selling.

Similarly, when the value of the RSI moves below 30, it indicates an oversold market consider buying. However, the RSI can stay overbought or oversold for long periods of time during strong uptrends and downtrends, respectively. Some traders use EAs Expert Advisors and trading robots , but their performance can easily change during major shifts in the market environment. Trend-following EAs work great in trending markets but give a lot of fake signals when markets are ranging.

Besides the currency market, traders can also day trade other financial markets, such as stocks or cryptocurrencies. However, be aware that different financial markets may behave differently and consider adjusting and fine-tuning your trading strategy to suit the dynamics of other markets. Also, many brokers have different leverage ratios for stock trading. Just like stocks, cryptocurrencies can be successfully traded with a day trading strategy by adjusting your current trading strategy and risk management rules.

Bear in mind that cryptocurrencies can be quite volatile at times, which makes having strict risk management guidelines even more important. Avoid trading in times of an upcoming fork or other important events that may affect the price of cryptocurrencies. The best time to place a day trade is when the market is the most liquid.

This will reduce trading costs by keeping spreads tight, reduce slippage that could move the price against you and increase the overall success rate of your trades. In Forex, the most liquid market hours are usually the New York and the London session, especially when those two trading sessions overlap. The following graphic shows the open market hours of each Forex trading session and their overlaps.

Trading on Fridays can also impact your trading performance, as many traders are closing their open trades to avoid keeping them open over the weekend. This can cause fake breakouts and lead to reversals of short-term trends established during the week. Day trading needs to be understood before getting your feet wet New traders should first sharpen their trading skills with longer-term trading styles, such as swing trading, which gives them enough time to analyse the market and make sound trading decisions.

Only when you fully understand how the markets operate and gain the required experience should you start focusing on shorter-term trading styles. This assumption is wholly incorrect. Even though the average daily range for a currency pair will be much higher than the average hourly or four hour range, the only thing that a trader needs to do in this case, is to reduce the position size to adjust for the potentially larger stop loss. And thus, by doing so you will in effect, reduce your effective leverage which will in turn reduce your overall risk exposure in the market.

Again keep in mind that the primary job of a trader is risk management above all else. And one way that we can reduce risk is by reducing our leverage.

• Money market daily volume | Statista

Scenario B : Long 0. Now lets say we take each position on Friday and hold it over the weekend. You should consider that the next time you feel that the stop loss on your daily forex signals is preventing you from trading on it.

In trading, you should always try to follow the path of least resistance. This means that if a market is moving in a particular direction, odds favor the continuation of price in that direction, until the weight of evidence to the contrary proves otherwise. Using a daily forex chart for technical analysis can guide you in analyzing real trends in the market.

When looking at daily fx charts to find trends , you want to make sure that you are looking at the right amount of data. Typically, you would want to analyze the prior to daily bars on the price chart. This is a rough guideline, but has worked well for me as my forex daily strategy for analyzing potential market trends. Here are a few simple techniques for finding emerging and established trends in the market using the daily chart.

Swing High and Lows — During an uptrend, the market will make higher highs, and higher lows. Conversely during a downtrend, the market will make lower lows and lower highs. Compare where price is relative to these averages, and watch out for times when price crosses these levels, as it could be a prelude to future price moves.

Trendlines — As simple as they are, trendlines are invaluable when it comes to trend identification and potential reversal points. Be on the lookout for breakout closes outside the trend line as this could be an early warning signal of a reversal taking place. Trading using a Top down analysis approach is something that every aspiring trader should get in the habit of doing. With this type of analysis you would typically start by analyzing the longer time frames such as the monthly or weekly charts.

Then you would move down to the daily chart. Only after you have done this would you start your analysis of the intraday charts such as the minute, 60 minute or lower. A multiple time frame approach can help a trader in trade selection and in filtering out potentially bad trades. One of the most important timeframes to consider in a multi time frame analysis is the daily chart. This is where the major participants do most of their analysis and as such where you will find some of the best Support and Resistance levels to trade off of.

Most professional traders will want to know what is happening on the daily timeframe regardless of what their trading timeframe is.

Why Trading the Daily Chart Will Make You A Better Trader

Whether you are a day trader or swing trader, you would want to try to trade in the direction of the momentum as seen on the daily chart. If you only rely on one time frame to trade, your trading timeframe , you are trading with a handicap and reducing the chances of a successful outcome on your trade. Now that we have had an in depth discussion on some of the benefits for utilizing the daily time frame chart, lets discuss the importance of combining the daily chart for overall market bias and using the minute chart to look for technical signals and in fine tuning your trade entry.

The combination of the daily chart for trend identification and the minute chart to find trade opportunities and fine tune entries is generally considered a swing trading approach. Swing traders typically hold trades from 2 days to about 7 days or so. The swing trading timeframe provides ample opportunity for traders to engage with the market on a regular basis, while keeping transaction costs to a minimum.

In that regard it is the best of both worlds when comparing it to day trading or long term position trading. This serves as his big picture levels. Then he could zoom down to the minute chart to analyze price interaction at these levels.