Top 5 Best Forex Trading Strategies For 2022

Forex Trading Strategies

Choosing the profitable forex trading strategy requires identification of a suitable technique for a trader. By acquiring the one, some traders manage to win large while other only earn a few bucks. Therefore, the traders that enjoy these techniques should choose high yield strategies, which enable transactions to continue for an extended period – if they catch a trend. But, how exactly? We have produced a list of five forex trading methods that have shown to be effective for many traders. Let us get started!

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  1. Zones of Supply and Demand Trading Strategy for Forex

Zones of Supply and Demand Forex Trading Strategy is a primary method that leverages the Supply and Demand indicators to identify price movement zones. This method tries to find entry zones and assists traders in determining profit objectives. Profit objectives determines horizontal supports and resistances, as well as swing highs and swing lows. It is a more conservative technique than aiming high or low candles since the price may occasionally bounce off before reaching the high or low.

This technique often has reward-risk ratios of more than 2:1, which is more than enough to make the method extremely successful. Although the win percentage is lower with this method, the payouts frequently cover the losses plus some.

2. Outstanding Oscillator Retracement Forex Trading Strategy

The Awesome Oscillator and the Hull Moving Average are applicable in this trend retracement approach. The Hull Moving Average is the primary trend filter. The slope and color of the HMA determine the trend direction. Based on the HMA, trades are only entered in the direction of the trend. The Awesome Oscillator functions as a trend filter and an entry signal. The direction of these trends then determine whether the bars are positive or negative.

The market should be trending if the Awesome Oscillator and the Hull Moving Average converge. Traders might then wait for the price to retrace. These retracements would lead the Awesome Oscillator to change colors for a short period. When the price resumes the current trend’s direction, it will revert to the color direction.

This strategy authorizes traders to trade an established trend while controlling chasing price.

  1. Moving Average Trend Forex Trading Strategy

The convergence of the three Moving Average Cross indicators and the Trend ID indicator is the foundation of this technique. These two moving averages operate on distinct trend timeframes, but when they agree, they can create potentially high-yielding trades.

The Trend ID indicator is a trend indicator that focuses on the long-term trend. As a result, this indicator acts as the principal trend filter as well as an early indication of an entry signal. Trades are considerable only when the red line has passed over the two blue lines and is on the correct side of the midline (zero).

The three Moving Average Cross indicator shows the short-term trend. This indicator’s trade signals help traders to enter trades with more precision, allowing them to set tighter stop losses. This reduces the risk associated with each trade.

This approach allows for deals that can earn ten times the amount staked on each trade. It is preferable to use this method while trading a new long-term trend.

  1. Forex Trading Strategy Using the Heiken Ashi Flag

One of the winning strategies to trade the market is using trading flags and pennants (60 percent accurate). The issue is that many traders struggle to spot such patterns in a naked chart. Because these patterns occur as retracements, the Heiken Ashi Flag Forex Trading Strategy assists traders in identifying these high probability flag patterns.

We would use the 200-period Exponential Moving Average (EMA) as our significant trend filter to trade this method. All trades should follow the same trend as the 200 EMA. Following that, we will search for a price retracement around the Heiken Ashi Smoothed indicator after a big impulsive rise or decline. If we see a flag or pennant pattern, we will make a note of it on our charts. We will enter the trade as soon as the price breaks out of the pattern’s body.

Furthermore, flag patterns can generate a payout that is 3 to 4 times larger than the danger associated with the stop loss. This increases the strategy’s profitability.

  1. Bands and Bars of Trend Trading Strategy for Forex

The Trend Bands and Bars Forex Trading Technique is a trend-following strategy that relies on the convergence of the Trend Bands, Trend Bars, and Bill Williams ATZ indicator. It provides us with a solid trading strategy because these indicators may already perform incredibly well on their own.