Technical Forex Strategies

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Last Update: October 2nd, 2019

Technical analysis is very important when trading forex or any other asset. The fundamentals might set the direction of a pair, but the technical analysis dictates the entry and exit levels of your trades. If you ignore the technicals, you may end up losing even if your analysis is impeccable. Therefore, FX Leaders continuously updates its technical forex strategies to reflect the changing market conditions and help you identify good entry and exit points, as well as how to manage yourself when in a trade.

What is Volume in Forex Markets

Forex volume is probably one of the most misunderstood, yet most important tools traders have at their disposal. In other financial markets such as stocks and futures, traders almost exclusively use volume to make trading decisions, however, in forex markets, traders are often quick to overlook what can be an incredibly useful tool. Full Article

Trading the Bullish Engulfing Candle

Candlestick patterns are an excellent way for traders to look for areas of strength and weakness. In particular, identifying reversal points with candlestick patterns is a way traders can gain an edge in the market. One of the most effective patterns for doing just that in forex trading is with the bullish engulfing pattern. Full Article

How To Trade Shooting Star Candlestick Patterns

Candlestick patterns are among the most reliable trading techniques for traders. When it comes to the shooting star candlestick pattern, we must differentiate between a bearish shooting star and a bullish inverted hammer pattern, which is very similar yet gives a completely opposite signal. While shooting star patterns are very easy to identify, it is important to realize that candlestick patterns shouldn’t be the only reason you enter a trade. Full Article

Fibonacci Indicator – Forex Trading Strategies

The ‘Fibonacci Indicator’ forex trading strategy is one of the most well known and commonly used long-term Forex trading strategies. This method relies on what is called a ‘Pullback’ and to fully understand how it works we must discuss the more fundamental concept ‘the trend’. When looking at each price change individually it is very hard to find a pattern. Looking at the bigger picture allows us to identify the trends. Full Article

Horizontal Levels – Forex Trading Strategies

Horizontal Levels is one of the simplest yet incredibly useful ideas in Forex trading. Horizontal Levels are fundamental in most Forex trading strategies and aid us in analyzing charts. However, they can also be used on their own as a strategy rather than just a tool for other strategies. Full Article

Head and Shoulders – Forex Trading Strategies

‘Head and Shoulders’ is one of many recognizable and tradable chart patterns. They consist of a high peak in the middle and two double peaks on either side of that one as can be seen in the illustration below. The higher peak is the head and the two lower ones are the shoulders. The pattern itself looks like a head between two shoulders, hence the name. Full Article

Divergence – Forex Trading Strategies

Traders and analysts of the financial instruments, apart from the fundamentals, use a number of indicators to figure out what might happen to the price of a certain instrument. These indicators offer a simple method of recognizing patterns and predicting which way the price will trend. The use of these indicators is what makes Forex signals possible, as they allow for real-time analysis of the price action and our analysts here at FXML use them all the time. Full Article

Candlestick – Forex Trading Strategies

Candlestick charts are the most common chart types used by retail traders and investors. There are other types of charts such as line charts, bar charts etc., but they don’t tell the story of past price action like candlestick pattern indicators do. When trading is based on technical analysis, the decisions for future price action are made based on how the price has reacted in the past. Candelstick analysis is very useful and they are a favorite indicator for many traders. Full Article

Triangles and Wedges – Forex Trading Strategies

We have covered most of the important technical chart patterns in our strategy section. “Triangles” and “Wedges” are two of the 10 most important chart patterns and in this article we´ll explain how to trade them. Full Article

ADX (Average Directional Index) – Forex Trading Strategies

How many times have you entered into a trend only to find out that it has already run its course and you were too late? Many of the Forex trading strategies that we use help us predict which way the market is trending and whether to expect a bearish or bullish trend, but give little or no indication as to the strength of the trend. ADX, or Average Directional Index, is a tool that is designed to help us anticipate the strength of a trend to avoid these kinds of situations. Full Article

Trading with Ichimoku – Forex Trading Strategies

Ichimoku Kinko Hyo means “instant look at the balance chart”. It is based on other charting indicators like candlesticks and moving averages so it is considered a technical strategy. Basically, the Ichimoku indicator is a group of indicators or a strategy that indicates the trend. It uses multiple point moving averages that are calculated based on the medium price of the candlesticks or (high+low)/2. Full Article

Hedging – Forex Trading Strategies

Traders of the financial markets, small or big, private or institutional, investing or speculative, all try to find ways to limit the risk and increase the probabilities of winning. There are many Forex trading strategies out there and hedging is one of them. In fact, hedging is one of the best strategies to do just that, that’s why many large institutions use it as a mandatory component of their tactics. Full Article

Elliott Wave Theory: The Background – Forex Trading Strategies

Having nothing in particular, to fill his days, Elliott turned his attention to the stock market behavior and developed his theorem in later stages of life. Born an accountant, but retired at age 58 after catching a virus from a trip to South America. This is one of the oldest trading strategies, first published in 1938 as a book under the name ‘The Wave Principle’. Until that time, the general concept was that the market behaved in a chaotic manner and there were not many trading strategies if any existed. Full Article

Trading with the Elliot Wave Theory: Part 2 – Forex Trading Strategies

Previously, we published an article where we explained the development and workings of the Elliot Wave Theory. This principle is useless unless implemented in everyday trading. In this article, we will explain how to successfully trade with the Elliot Wave Theory (EWT). Full Article

The Importance Of Liquidity in the Forex Market – Forex Trading Strategies

Liquidity has been an important factor since ancient times and it continues to this day. A person, company or a country can be very wealthy but if they don´t have enough liquidity or liquid assets they can bankrupt easily. Very often we hear about liquidity or the lack of it, during financial crises. Full Article

How to Read and Trade the Price Action – Forex Trading Strategies

Trading can be as difficult or as easy as you want it to be. Indicators and trading strategies can make trading much easier, and knowing how to read the price action is one of the most useful ways to trade. Since price action trading doesn´t predict the future like many other indicators, it never lies; it will tell you how the market will actually behave during different time periods and prices. Full Article

Trading Forex According to Available Funds and Time – Forex Trading Strategies

Many forex traders have limited funds or time which can be seen as an obstacle. However, there are trading strategies suitable for these forex trader types, which can help them trade as successfully as any other trader. Full Article

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.