Easy forex trading strategies is not so much the number of indicators and their assignments, the presence or absence of fundamental analysts, but in their interpretation, comprehension and understanding. The approach determines the degree of complexity of the trailer even the simplest strategy. Basically here the very essence of the matter. Simple forex strategy - a reflection of the experience and understanding of trade as such by the trader. And vice versa. Lack of experience, and trade at an early stage can play a fundamental role in the process is the wrong analysis, using even the simplest forex trading strategies. Later, a novice trader, usually begins simply "break" that was built an experienced trader.
It should be noted that the simple forex strategy - it's a huge amount of work and time, nerves and endurance. Since most traders will sooner or later come to the fact that one should not "stuff" schedule an endless list of indicators, and the leading in-depth fundamental analysis. Sometimes it's enough to be armed with three, maybe two, and sometimes only one indicator for successful trading. We should pay attention to the attitude of the trader to trade and analytics. Usually after many mistakes and difficulties, the trader comes to the most that neither is a simple forex strategy.
By adopting any one or a couple of indicators trader provided a great opportunity to choose the interpretation of these instruments. While some test them by hand, others use the default settings. And someone even uses the Fibonacci numbers. The choice is huge. On the example we can consider the simple strategy of forex with one oscillator, the Relative Strength Index (RSI), including the strategy of simple lines of support-resistance. The parameters of (RSI) are taken standard - the interval 14.
Brief description of the strategy.
The values of the RSI indicator is within the vertical values from 0 to 100. If the index is above the line, which shows the value of 70, this indicates that the market is overbought. If the indicator value would be below 30, it would mean that the market is oversold situation. In this example, the market was overbought.
By controlling the time of crossing the line on the price chart and crossing the line overbought can safely open the deal to sell, or just use otlozhennik. This method belongs to the category of simple forex strategy. It's only to record the simultaneous break-downs or to buy or to sell.
But that does not mean that the reduced trading strategy is absolutely a good result. The time period is taken daily. This means that to some extent excluded so-called market "noise", which is more prevalent on account of shorter time intervals. This in turn means that there is a greater number of false signals. It's for this reason that the line of support-resistance and RSI as a complement to each other, although this factor is not to say that there is no false punctures price support line, and the index of false alarms as well.
In any case, this simple forex strategy, if not complicate it complements other indicators, while using it on the smaller time intervals. In other matters it's all relative. And as has been said above, it all depends on the interpretation, reflection and understanding of the market trader. Source: DewinforexSocial button for Joomla