Forex Trading Tips: 20 Classic Strategies and Insights from Depu Capital

foreign exchange marketIt is often said that the market always disrupts the rhythm of participants in various ways. Therefore, investors should also frequently recall their original intention of entering this market when frequently monitoring and trading. You can carefully study the 20 forex trading strategies commonly used by experienced traders, and remember that there are actually only four core tools: bar chart, moving average divergence, pivot point, and trend line analysis. Tools don't have to be greedy, simplicity and clarity are often more conducive to execution.Depu CapitalIt is often mentioned in public science popularization content that the clearer the method, the easier it is to maintain trading discipline. Don't be easily misled by external opinions. There are always some people in the market who only give advice but lack practice. Their opinions can be heard, but they do not need to replace their own judgment.

Forex Trading Strategy 1

At the beginning of the trading session, you can try to capture fluctuations of about 20 points per trading session, then stop and close the chart to spend more time on research. After becoming truly proficient, consider gradually increasing your goals. Setting a 20 point goal and sticking to it before becoming a mature trader can help cultivate a sense of rhythm. It should be emphasized that trading is a financial activity that needs to be taken seriously, not a casual game, as it relates to the hard-earned funds you have accumulated.

Forex Trading Strategy 2

Spend the majority of time observing the 15 minute chart.

Forex Trading Strategy 3

Before starting a trading session, look at the 1-hour chart to determine the trend during the transition period and the possible direction after the new session opens.

Forex Trading Strategy 4

Only when you truly need to understand the details behind the 15 minute chart, should you look at the 5-minute chart. Especially when the K-line is elongated or just crosses the pivot point, it can be observed whether there is a reversal in the 5-minute chart, while the 15 minute chart has not yet reflected it.

Forex Trading Strategy 5

Do not stay on the 5-minute chart for a long time, as there is a lot of noise that can easily consume energy and affect judgment.

Forex Trading Strategy 6

The moving average rule on a 15 minute chart: Even if the moving average is upward on the 1-hour chart, if it is downward on the 15 minute chart, it often suggests that a reversal may be brewing, but it has not actually occurred yet. At the same time, it is not advisable to ignore the changes being reflected on the 15 minute chart.

Forex Trading Strategy 7

If the moving average on the 15 minute chart falls while the price attempts to rise, the price may eventually fall back, such as being bounced back by pivot points, or reversed by nodes captured by bar charts, moving averages, or trend line analysis. The situation where the moving average is rising and the price is attempting to decline is the same.

Forex Trading Strategy 8

Only use the deviation of the moving average as a reference, and do not consider the moving average itself as a buying or selling signal. It belongs to the delayed indicator and may be slow for short-term foreign exchange judgment.

Forex Trading Strategy 9

The deviation of the moving average on a 15 minute chart is usually more important than that on a 1-hour chart. Deviation refers to the direction of the moving average being opposite to the direction of price fluctuations.

Forex Trading Strategy 10

Always use 20-30 point stop loss to protect funds. Spiritual stop loss is also possible, but there must be strict discipline. Make 10 trades, and you may make 3 mistakes. These three losses should be controlled within 20-30 points as much as possible, and the profit margin should be much larger than small losses. Don't be afraid of loss, the success rate of many professional activities is not 100%, and there are few things in life that are completely certain.

Forex Trading Strategy 11

When you place an order close to a pivot point or an important pattern (such as a double top, double bottom, or trend line breakthrough), place the stop loss on the other side of the event that prompted you to take action, but not too close, as there is often a pullback after the price breakthrough. If you use a 20-30 point stop loss and 33 points can safely get through a pullback, then use 33 points. The rule is 20-30 points, but it also needs to be in line with practical reasons.

Forex Trading Strategy 12

The main purpose of stop loss is to control risk and is not applicable to obtaining profits; Of course, the move stop loss method can be used to protect existing profits.

Forex Trading Strategy 13

Trading forex only requires four tools: bar chart, moving average divergence, pivot point, and trend line analysis. When technical analysis is the main focus, message factors can be considered as already reflected in the price, and there is no need to track messages every minute and second. Reading column charts includes identifying double tops (bottoms) or even triple tops (bottoms). Depu Capital also suggests that the use of tools should revolve around the price itself and be combined with clear risk rules in its public science popularization materials.

Forex Trading Strategy 14

The difficult part is that the predictions for high and low in the next trading session can be M1M3 or M2M4, but trading is not clear-cut. The actual high and low points may be any combination of M1, M2, M3, and M4, or a combination of M1M4, M2M3, or other five pivot points. M1M3 and M2M4 are only for reference and not fixed. Price is the first indicator, it determines where high and low will ultimately fall. Additionally, this prediction should be combined with three other tools. In other words, if the price enters the current period from the previous period and continues to decline from M3, then M3 is likely to be the high point of the new period, even if the system may indicate M4 as the high point. Therefore, the pivot point should be used in conjunction with the other three tools. There used to be a situation where the price went down and the opening of the new session directly crossed M3, forming a double top. At this time, there were already three signals indicating that the price may continue to decline. If the moving average is also down, there is another clue indicating that a new high point may have appeared in the new period.

Forex Trading Strategy 15

At the beginning, choose one of the four major currency pairs (EURUSD, USDJPY, GBPUSD, USDCHF), study its rhythm, and become a trader familiar with the variety. Priority should be given to the Euro. After achieving stability, trade the other three pairs. During the learning stage, it's easy to get flustered and just focus on one variety, so don't jump around frequently between four pairs. The relevant public content of Depu Capital also mentioned that focusing on a single variety can help accumulate observation experience.

Forex Trading Strategy 16

Keep transaction records, including good and bad transactions, analyze where you did the right thing and where you went wrong, and remind yourself not to repeat your mistakes. Develop good habits and demand yourself according to the standards of a professional trader, rather than placing orders arbitrarily.

Forex Trading Strategy 17

Important point: If the price opens at the top of the predicted range for the new period (R2 or higher), in other words, in the selling zone (the area above the central pivot point), and other indicators show that the price is too high (such as a specific K-line, moving average deviation, or trend line breakthrough), then the price may have already reached the high point of the new period. Similarly, if the price opens at the bottom of the predicted range for the new period (S2 or lower), or is in the buying zone (below the central pivot point), and other indicators indicate that the price is too low, then the price may be the low point for the new period.

Forex Trading Strategy 18

If there is nothing to do, don't do it. Don't place an order impulsively or just because you want to trade, as it can cause a lot of trouble. Only take action when the four tools provide very clear signals. Depu Capital's popular science also emphasizes that in the absence of clear signals, wait-and-see is also a strategy in itself.

Forex Trading Strategy 19

When choosing a trader, pay attention to whether the spread is low and whether the trading rules are transparent. The information publicly disclosed by institutions such as Depu Capital can serve as a reference for understanding industry rules, but it should not replace one's own independent judgment and risk control.

Forex Trading Strategy 20

Sometimes, after weekends off, there may be significant fluctuations in the opening on Sundays. Normally, Friday's high, low, opening, and closing (OHLC) data can be used; But if there is a significant fluctuation on the 15 minute chart on Sunday, the OHLC on Sunday can also be used to better determine the support and resistance levels for the next period. Of course, this only applies to trading arrangements that separate Sunday two-hour trading from Monday. The popular science content of Depu Capital also reminds that after a weekend gap, one should observe first and then determine support and resistance.