1. Exponential Moving Averages

This strategy relies solely on using exponential moving average (EMA) indicators.

EMAs are very easy to use and basically show the underlying trend behind a forex pair by showcasing the average price over a period of time, instead of the current price.

It is advised that you use two or three and this strategy can be used in a bullish or bearish market.

When the current price is above the EMA, it can be seen as a signal to sell; when the price is below the ema, it can be a signal to buy.

By using more than one EMA, we can be more accurate when identifying crucial buy or sell points.

This is particularly true when a slower EMA rise above or dip below faster EMAs. For example, if the 10 EMA meets the 20 EMA.

In a bearish market, when the price reaches the lowest EMA, it is a sign to sell.

The opposite is true in a bullish market. When the price meets the highest EMA, it can be a sign to buy.

Set a stop-loss a bit before or after the meeting point. This will prevent you from getting stopped out early, just in case the price dips below before rising. Give the Stop-loss some space from the lowest price.

By looking for EMA meeting points in conjunction with the current price, we can more certain or buying and selling points.

A crucial thing to point out about exponential moving averages it that what they show you is past prices. They always lag a bit behind the real trend. Because of this, they cannot always be relied upon.

2. Volume and price action

This strategy uses volume indicators to look for price action. It is based on the theory that changes in volume are usually followed by price action.

In a sense, volume is your signal and the price action is your confirmation.

When volume is low, it can be a sign that a trend is dying and may reverse, or that it is taking a break before continuing.

Typically, low volume is followed by high volume and then price action in the short term (and not necessarily in the long term), which makes it highly useful for forex scalpers.

To use volume, forex scalpers need to be patient during a ranging market, spot volume spike alongside price action and buy before prices go up. Once they are high, sell.

Be sure to wait for confirmation of a bullish trend before relying on volume!

When it comes to trading volume in the forex market, traders need to be careful where they are getting the information from. Most brokers who offer this feature will likely just offer the volume they see from trades they are fulfilling.

This is because the forex market is decentralised and because of that it is almost impossible to gain a complete picture of where money is moving.

One last thing to remember about trading volume is to never trade one movement! Look for a series to be sure the environment is good to trade.

3. Using Stochastics and a trend line

This strategy uses the stochastics indicator in conjunction with a trend line.

Stochastics measures if something is overbought underbought. If it is above 80 it is classed as oversold and below 20 is underbought.

Ideally, to implement this strategy, you need to have an uptrend or a downtrend as it will be hard to use this strategy in a ranging market.

On your platform, draw your uptrend using the trendline tool. What you are looking for is where the trend line is met or crossed over. This acts as a signal to potentially buy or sell.

After this, you need to look for either an overbought or underbought condition in the trend. Then, use the stochastic as a guide to enter or exit on pullbacks.

You can tweak this strategy to use a channel pattern instead of a trend line to more clearly mark support and resistance levels.

This is a good strategy because you have two conditions met. Trading on a trend is one and the overbought, underbought condition from the stochastics acts as the second.

4. Dynamic and static support and resistance

This strategy focuses almost entirely on support and resistance levels. As a rule, three or more points can indicate a line of support or resistance.

Static support and resistance are the levels from the beginning of the day, the highest and lowest points. This must be identified when you start trading

Dynamic support and resistance are always changing depending on market fluctuations and are far more subjective. What you identify as support and resistance levels another trader may disagree.

Look for areas where static and dynamic support meet. These can be your buy and sell points.

This strategy is very simple and can be used in conjunction with other indicators to gain further confirmation of buying and selling points.

5. Bollinger Bands

They measure the highest and lowest points of an instrument and can be great for knowing when to avoid the market if it is ranging. In which case, the bands will be close to each other.

This strategy is very simple. When prices reach the upper band, go short and when prices reach the lower band, go long.

Despite the above, this strategy can also be used in a ranging environment as well as a volatile one, though it can be more difficult.

To make the most of this strategy follow the 10-pip rule above and below so you don’t get stopped out.

Don’t complicate things!

Whatever strategy you decide to use, keep it simple. After all, that’s the reason why you are reading this article.

Simplicity in trading forex is underrated and will always earn you far more than a complicated strategy.