Making money from forex trading requires sufficient knowledge and proper strategies. Hopefully, many resources on FX trading will help you build your strategy and gather adequate knowledge about this trading.
However, newcomers often face some confusion in choosing resources to build up their strategies to trade in the FX market. You have to know the resources first to master profitable and stable trading strategies.
We made a list of forex strategies resources in this article, which are the best and most common resources you can use to make your strategies. So you can make consistently profitable trades and achieve the goal of financial freedom.
- What are forex strategies resources?
- Final thoughts
What are forex strategies resources?
FX strategies resources are simply a collection of free resources that are subsidiary to catch profitable trades. The forex strategies resource includes indicators, trading methods, books, analytic tools, analysis, free trading signals, binary options, forecast, etc.
You can master any strategy from these resources or create your strategy by using these resources. Let’s check the list of the top ten instruments or resources below.
Top 1. Forex strategies
FX strategies are a complete method to participate in the financial market. That includes entry, exit, trading duration, analysis, etc. Every trader follows strategies to perform in the market. Although no strategy will always work with a hundred percent accuracy, you can’t survive in the market without any strategy. Moreover, most of the newcomers without complete strategies end up losing capital.
So you have to follow comprehensive strategies to become a successful trader in the FX.
A perfect trading strategy should have the following characteristic:
- Consider the market context.
- The capability of taking trades in both bull and bear markets.
- It includes strong trade management rules.
- Profitable in every set of 10 or 20 trades.
If your trading strategy is not profitable in every 20 trades, you may have to update it by adding conditions that will reduce the number of trades and increase the profitability.
Top 2. Binary options strategies
Binary options trading has become so popular among FX traders nowadays. There are some similarities between binary options trading and the sports betting world.
Binary options traders indeed have opportunities to make more profits in comparison to general trading. Some might call it gambling which is not appropriate entirely. However, traders with strategies can enjoy huge returns from binary options trading. Strategies help traders to avoid gambling, emotional trading and also increases confidence.
The above image shows what a binary trading platform looks like. Depending on your analysis, you have to trade in this chart by clicking on the up or down button.
Top 3. Trading system
Trading systems are a set of rules or conditions that help traders to make trading decisions. The common fact among the primary participants is that they have tremendous resources and significant capital.
So it would be better to choose excellent trading systems before starting trading as an individual trader with small capital. In addition, technology and increasing demand introduce several trading systems besides manual trading, such as automated trading, algorithmic trading, semi-automated trading, etc.
What is the best trading system?
There are thousands of trading systems in the world. Most of them were created by prominent analysts and economists. You can choose any system, however, the best approach is to identify the market direction and build your system by your observation.
High Low with ADX trading system
The above example is a trading system using multiple indicators. For instance, if all indicators provide a sell signal, the trading entry will be valid.
Top 4. MetaTrader indicators
MetaTrader indicators are technical tools that work with historical data to show the present condition and future price prediction. There are several types of indicators: volume, trend, volatility, and momentum. These are mathematical terms and technical tools that observe the price movement and participant actions on specific assets and show it.
These indicators are valuable tools that help you understand the market condition and decide to enter, exit, trading duration, etc., on particular assets.
Let’s see how an MT4 platform looks like with MetaTrader indicators.
Top 5. Trading chart patterns
Another top trading instrument of forex trading is chart patterns. In the FX, traders perform technical and fundamental analyses to make trading decisions. The technical analysis depends on the historical data.
A typical textbook says, “history repeats itself.” So the price movement leaves footprints behind and makes common patterns while price changing occurs. Some trendy chart patterns often take place during price movement. Knowing the patterns will increase your profitability in the FX.
The above image shows what a H/S pattern looks like. But there are more patterns like rectangle, triangle, 123 reversal, failed swing, cup and handle, etc.
Top 6. Trading indicators
Trading indicators include both technical and fundamental indicators that help to define the condition of the economy. Several macroeconomic data, such as GDP, interest rate, inflation, employment, etc., are significant indicators for any national economy. You have to check on these data to understand the strength and potentiality of any economy. When you have clear concepts and knowledge of these data about both participant currencies, you can easily predict the future movement of that currency pair.
Let’s see the GDP release from Australia in a chart, provided by the Australian government.
Top 7. Candlestick analysis
The concept of candles was a revolutionary invention in trading — every candle consists of much valuable information on price movement. For example, a daily candle contains the opening price, closing price, high and low of that day.
Several candlesticks such as Doji, Hammer, Head and Shoulders, Engulfing, etc., are very popular among traders to make trade decisions. Each candle is generally a visual representation of traders’ participation for a particular period. Price action traders often follow nacked chart trading and perform candlestick analysis to make trade decisions.
There are four elements in a candlestick — open, high, close, and low. Therefore, traders should combine how candlesticks are closing and opening from the previous candle and providing future price direction.
Top 8. Forex ebook
Books are always helpful to gather knowledge. You can always get thousands of free ebooks on the internet. Reading these books will help you to understand the FX market and participants’ behavior.
Let’s see the list of ebooks from the Amazon store.
Top 9. Online forex tools
Online forex tools are another top instrument you can count on the complete list of strategies resources. These tools include trading platforms, economic calendars, correlation matrix, calculators, time zone converters, etc. Using these tools will improve your skill and increase your profitability.
One of the biggest online forex tools markets is the MQL4 website, from where you can buy and sell any type of trading tools for the MT4 platform.
Top 10. Free forex trading signals
Free FX trading signals are the last instrument of the top list of strategies resources. This is because there are so many sites that provide free signals for individual traders. You can use those signals to increase your profitability. Besides, you can always seek the logic behind those signals. Understanding the signals will improve your trading skills and help you to become a successful trader.
Let’s see how forex signals work through the social communication platform.
The FX market is a very potential place to make money for any individuals with specific skills. We made a list of top instruments that are helpful and forex strategy resources. You can use these resources to make your trading life more manageable and profitable.
You can’t be successful or become a millionaire overnight without knowledge and practice. You have to spend time developing skills and master strategies to become a successful trader in this marketplace.