7 Powerful Skills in Forex Trading Improved For Huge Gift
7 powerful skills in forex trading improved for a huge gift is a day-to-day guide for every forex beginner who looks to learn and master forex trading.
These skills are learned from the wealth of experience of several successful forex traders.
In my last post, I talked about making forex trading a business rather than just a one-time goal.
What is forex trading?
Forex is a blend of words (foreign currency & exchange) meaning joining and combining two or more words and their meanings.
Foreign exchange is a process of exchanging one currency for another currency, and this could be a result of many purposes.
A forex trading app is a tool used by forex traders to buy or sell currency pairs.
Forex trading has evolved into a lucrative business over the years, daily trading volume reached $6.6 trillion in the first quarter of 2019.
The meaning of forex trading goes beyond this post, hence we have made many provisions on our trading platform where we teach and educate forex trading for beginners and intermediates.
We have one of the best trading platforms, with free daily forex signals, and forex news and we engage our readers on what is forex trading and how it works through our previous posts.
Introduction to the 7 Powerful Skills in Forex Trading Improved For Huge Gift
Forex trading is the largest and most liquid financial market in the world.
Is forex trading legitimate? Is forex trading legal? Is forex trading legit?
Forex trading is a legal business in every part of the world.
I have divided these 7 powerful skills into 2 sub-divisions, the first being the “3 R’s of Trading” and the second is what I call “price action strategies that work”.
The 3 R’s of Forex Trading the 7 Powerful Skills in Forex Trading
These 3 R’s are:
It is one of the norms to react to the market in forex trading but most of these norms do not always work for massive profit.
For example, you spot an uptrend in the market and you jump in to buy the asset. How sure are your buyers still left in the market?
What moves the direction of the forex market is a supply and demand law.
Can you remember the law of supply and demand?
When supply is high, demand is low and conversely, when demand is high, supply is low.
Several factors also determine price movement, amongst these factors are interest rates, economic news, political news, and many others.
Retest Trading a Powerful Skill in Forex Trading
What is retest trading in forex?
Retest trading is a strategy employed in forex trading after a break of structure in price movement.
I will explain that
Let’s say, a price of an asset is in an uptrend, then at a particular high of the uptrend, a downtrend exists meaning a break of structure at that current level.
Many traders are quick to sell the asset thinking the break of structure is strong enough for the price to go in reversal.
Smart traders only wait for the price to retest the highs and make moves downwards showing sellers’ strength in the market before placing a sell trade.
Knowing this skill will save your equity!
Rejection Trading a Powerful Skill in Forex Trading
How do you identify the price rejection of an asset in forex trading?
The first powerful skill has taught you how to wait for a retest as a confirmation before jumping in to trade an asset.
This segment will teach you how to use the rejection strategy to win a trade
Price rejections are identified by wicks of the candlesticks
At a resistance level, when you have candlesticks forming bearish patterns with wicks or shadows, this is an indication of selling the asset.
This is a confirmation that buyers have started to relax in the market and this could make sellers dominate the market.
Conversely, when you have wicks formation at support with bullish candlestick patterns or candles, you are sure to have a buying position as a smart trader.
Reaction Trading a Powerful Skill in Forex Trading
What you react to in the forex market determines your win ratio.
How do you react to false breakouts, forex news, and noises in the forex market?
The first two skills are worth reacting to in the forex market but not market spikes and the rest.
Forex news is very pivotal in the financial market, however, prices leave with them traces of future occurrences.
Be a price-action trader!
The Price Action Strategies That Work
This is the second sub-division of the 7 powerful skills in Forex trading improved for a huge gift.
This will serve as a huge gift if only you can master these strategies and play according to the rules.
Taking price action seriously guarantees profit but you have to be smart to know when price action is no longer effective.
The 4 price action strategies for the huge gifts are:
- False breakouts
- Build up moment
- Making the best of breakouts
- Area of Confluence
False Breakouts Trading a Powerful skill in forex trading
False breakouts are known as spikes in the forex market when the price appears to have broken out of a market structure but in truth, it has not it was just a false movement.
For example, in a ranging market, when price breaks out of the box and all of a sudden, it bounces back into the box.
At the point where the price broke out upward, many buyers quickly take the ride upward and get their stop losses hit immediately after the price bounces back into the box.
It is intelligent to know that using a retesting trading strategy will sort out this false breakout problem.
Are you happy you now found a solution?
Build up Moment Trading a Powerful Skill in Forex Trading
Build-ups are also formations of prices around the resistance or support levels.
For example, when a market is ranging and it can be seen that prices have accumulated around the resistance leaving out the majority of the support zone, then a buy of the asset is advised.
A build-up to where you have higher highs and higher lows shows buyers are gaining the market over sellers. The opposite exists when you have lower highs and lower lows making a build-up.
The longer the build-up, the more explosive it will be.
You identify a build-up on the daily time frame, identify a break in the 4-hour time frame and take advantage of the build-up strategy.
Making the Best of Breakouts
As you have learned from the build-up strategy, only a build-up of prices guarantees a true breakout of the price of an asset.
You could use a build-up to take action or you could wait for a retest.
Lastly, you can use the moving average to trigger your entry.
Does moving average work?
Yes, the moving average is a very good indicator if used correctly.
When you have a ranging market, that is price is stuck in the box between support and resistance, then comes the build-up formation of prices and your 20 SMA is well-positioned at the base of the candlesticks, then you can jump to buy the trade.
Does this strategy work always?
NO! But you have a tight stop loss and a massive profit in prospects.
This could be a risk-reward ratio of 1:3 or 1:5
Great, you say?
Yes, I love that too.
Area of Confluence
What is an area of confluence?
An area of confluence is a very juicy spot on the trading plan where at least 3 different types of traders are looking to place a trade.
This is a classic approach to trading the financial market either forex, stocks, or cryptocurrency.
This approach is when support/ resistance traders, trendline traders, moving average indicator traders, Fibonacci indicator traders, and chart pattern traders are all looking to place trades.
When you don’t have these juicy spots, trades are not placed as an area of confluence trader.
The 7 powerful skills in forex trading improved for the huge gift is an addition to the previous posts. You would have to learn all and more strategies to become a pro in the forex market.
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