It can also enhance the possibility of returns. Therefore, the effects of the momentum strategy are prevalent. What is momentum trading? The law clearly states that an object in motion stays in motion until an external force is applied.

In the same way, the market in motion tends to stay in motion rather than the reverse. This is the main reason for which momentum strategy is very much powerful. A currency with a rising value will have so many ups and downs. But it all happens in the more significant and consistent rising trend. Weekly charts can add an advantage to your overall market trend. It is less time-consuming and labor-oriented than daily or intraday charts. Traders who follow the weekly trading system can easily spend more time without sitting in front of monitors.

It is a time-saving and easy method to look upon the overall market and get a solid understanding of the trading market. We will use a technical approach using a weekly chart strategy in this example. The primary assumption is that fundamental analysis follows technical analysis before any trading rules. There are three different kinds of indicators.

If you want to follow the weekly timeframe forex strategy, then you should use these three indicators are as follows:. SMA or EMA — moving average indicators Oscillators such as Stochastic, RSI, MACD Trading patterns based on candle formations and shapes. It would help if you waited for a 50 week MA to cross above weeks MA OR Bullish pattern bearish engulfing pattern or any other.

Stop-loss will be reached when the price close is below the RSI trend line. Stop-loss will be reached when the price close is above the RSI trend line. The weekly trading strategy is based on the analysis of the exponential moving average. While you are in the direction of a larger market, you need to take only stochastic signals.

You will have to ignore the bearish signals at this point. The reverse signals from stochastic or RSI are generally used for taking profits. It is needed when the moving average surpasses the price. The candlestick pattern or other methods can confirm the stochastic or RSI signals.

We have to wait for a pullback to dynamic resistance, this is where we have an edge in the downtrend, right? Now have a look at the chart above. Where is the price right now? At the dynamic resistance, right? This is exactly what we need. Our next job is to place the trade, for that we need a confirmation to go short. We can use price action for this matter.

Have you noticed any price action pattern here? If you can spot a bearish engulfing pattern, great. This is our entry trigger. Now all confluences are aligned nicely, Now it is a matter of placing the trade. We can place a sell order here. But where we place stops and targets. According to the above chart, we placed stop-loss a few pips above the lower high, And we used 2R for the target which means our take-profit is twice as the stop-loss.

Beside the stop-loss and take profit, we have to manage the trade, right? This is simple. Learn more on How to Cut Losses in Forex. Have a look at the two examples that we executed in the last month before move into the next trading strategy. Support and resistance are one of the highly rated and most profitable trading tools when it comes to anticipating market movements. Almost every trading strategies out there use some sort of support and resistance.

Another fact about support and resistance is that they tend to works better on higher time frames especially in the daily chart. Which mean price has to be test support or resistance in the near past. Have look at the 4-Hour gold chart below. According to the above chart, you can see that there is a level comes from the daily chart which acts as a resistance in past. But on the 4-hour we can see that price again bounce from that daily resistance level and this confirms this resistance is valid and can look for trades in future.

Just like that before looking for any trades we have to confirm the validity of the support and resistance. So what are the confirmations that we can use to find the price movement around support or resistance?

Have a look at the marked bullish engulfing candlestick pattern in the above chart. Why this candle is important for us? There are two reasons, one is Bullish engulfing pattern indicate buying pressure and the second one is it occurred at daily support level which is a higher probability area to look for trade opportunities.

With all these confluences in mind, we place stop-loss few pips below the bullish engulfing pattern and we use 2R for the take profit. Just like that, you can also use the pin bar as your entry technique. Have a look at the chart below,. Read our Ultimate Guide to the RSI indicator to learn more about the RSI Indicator. Although we had pips wider stop, our reward is four times bigger than risk.

That is what the casinos are for. If your goal is to become a profitable forex trader — try to accept the fact that Real trading is boring and slow and that is a good thing. Okay, so far we discussed why daily timeframe is playing major roled especially when it come factors like Quality and Reliability. Predicting price movement in the Daily timeframe is more accurate compared to the lower timeframe. This is because lower timeframe is very choppy — It includes choppy movement of news events and lots of hard to read price movements.

In the Daily timeframe, however, price actions are more clear, because It filtered out all choppy movement comes in the lower timeframes. Also, price actions in daily timeframe have more value than lower timeframes. This is because a Daily candle reflect whole trading activities in a given day or in another word a daily candle reflect all trading activities happening in Asia, London, New York sessions.

To understand where the market is heading you need to place support and resistance in your forex chart. The only thing we can see is bullish and bearish price movements. But the chart with support and resistance, however, we can clearly see that price is at the level of daily support yellow circle. Okay, by simply placing correct support and resistance we can find out where is the market and where it is likely to heading.

As a forex trader, we need more confluence to buy at support levels. Okay, now you know where is the market and what are the possibilities for future price movement.

By observing candle size at the support and resistance levels will give you clues about how buyer and seller behave at the support or resistance. If you spot candle are getting smaller and smaller when it getting closer to support level, It basically saying sellers are losing their control over the market at the support and at the same time there are buyers who are willing to buy at the support.

This is the same chart that we used above. Have a look at the yellow circle. Did you notice anything? The yellow circle shows candles are getting smaller and smaller when it comes to the support level. Green zone which is a great indication that saying sellers are losing momentum at the support and at the same time buyers are buying at the support.

Have a look at the chart below. Did you spot any Price action trade setup? If yes, pat on your back. Look at the indecision candles at the support. What are they saying? Indecision between buyers and seller. Simple is that. What happened after the indecision?

Mainly we focus on daily time frame forex trading strategy. Why is that? Because trading daily chart is not as exciting as trading lower time frames such as Minutes or 5-Minutes. It is boring and it has fewer trading opportunities. But did you know that trading on the daily chart will allow you to execute higher profitable trades which often leads to consistent profits?

Not only that but also the daily chart helps us to improve areas such as trading psychology, trading discipline and patience. Read this article about How trading Daily Chart Can Help You Improve Your Trading. on that article, we listed 9 ways trading daily chart help us to become better forex traders. Today in this article we are going to talk about 3 profitable daily time frame forex trading strategies.

This is true as long as the trend keeps going up or down. But the trend is not going forever, at some point it has to reverse and this is where lots of trend traders got caught up. The point here is, You need to have a set of rule to both identifying on-going trends and trend reversals to trade while minimizing the trading losses.

We use Period EMA to find trend direction — If price trading above the Period EMA, It is a general uptrend and If price trading below the Period EMA, It is a general downtrend. We use Period EMA and 9-Period EMA to find dynamic support and resistance — During an uptrend, the area between Period EMA and 9-Period EMA work as dynamic support and during a downtrend, the area between two moving average work as a dynamic resistance.

We are going to use price actions as our entry trigger and we are going to talk about how to place stop-loss and take profits correctly. Price is making lower lows, moving averages are pointing down and above all, the price is bouncing off from dynamic resistance level twice Have a look at the blue box marked in the chart. Above factors confirm that we have a healthy downtrend.

Now we have to look for a way to go short. But how? We have to wait for a pullback to dynamic resistance, this is where we have an edge in the downtrend, right? Now have a look at the chart above. Where is the price right now? At the dynamic resistance, right? This is exactly what we need. Our next job is to place the trade, for that we need a confirmation to go short. We can use price action for this matter.

Have you noticed any price action pattern here? If you can spot a bearish engulfing pattern, great. This is our entry trigger. Now all confluences are aligned nicely, Now it is a matter of placing the trade. We can place a sell order here.

But where we place stops and targets. According to the above chart, we placed stop-loss a few pips above the lower high, And we used 2R for the target which means our take-profit is twice as the stop-loss. Beside the stop-loss and take profit, we have to manage the trade, right?

This is simple. Learn more on How to Cut Losses in Forex. Have a look at the two examples that we executed in the last month before move into the next trading strategy. Support and resistance are one of the highly rated and most profitable trading tools when it comes to anticipating market movements. Almost every trading strategies out there use some sort of support and resistance.

Another fact about support and resistance is that they tend to works better on higher time frames especially in the daily chart. Which mean price has to be test support or resistance in the near past. Have look at the 4-Hour gold chart below. According to the above chart, you can see that there is a level comes from the daily chart which acts as a resistance in past. But on the 4-hour we can see that price again bounce from that daily resistance level and this confirms this resistance is valid and can look for trades in future.

Just like that before looking for any trades we have to confirm the validity of the support and resistance. So what are the confirmations that we can use to find the price movement around support or resistance? Have a look at the marked bullish engulfing candlestick pattern in the above chart. Why this candle is important for us?

There are two reasons, one is Bullish engulfing pattern indicate buying pressure and the second one is it occurred at daily support level which is a higher probability area to look for trade opportunities. With all these confluences in mind, we place stop-loss few pips below the bullish engulfing pattern and we use 2R for the take profit. Just like that, you can also use the pin bar as your entry technique. Have a look at the chart below,.

Read our Ultimate Guide to the RSI indicator to learn more about the RSI Indicator. Before that keep in mind RSI over-bought and over-sold is not trading signals, But if you can combining RSI over-bought and over-sold with price actions, then you can have a small edge over the market.

Have a look at the chart below, first, you can see that price fell after the RSI overbought signal and the same thing happened again after the RSI over-sold signal — price move higher. Now the question is how to catch these movements? The breakout strategy comes very handily in this kind of scenarios. Why we wait for a breakout?

By waiting for the breakout we can increase the probability of our trade. According to the above chart first, we wait for RSI over-bought signal then we wait for local structure level to be broken to the downside. Now all we have to do is place our orders, right? As the above chart showed we placed sell orders after the breakout and placed stop-loss few pips above the moving average.

We use 2R for the take profit. Next, I have a question for you. If you like any of these trading strategies, How you are going to interpret these strategies to your trading career?

Just head over to any currency pair and going to trade these strategies , is that what you are going to do? If you like any of these strategies, I highly recommend you go over a few historical chart check whether these trading strategies are going to work or not.

Also, make sure to check whether these strategies are suits for your personality or not. Personality check is very important. Because you cannot profit from any trading strategy which is not suited for your personality. Just like that successful forex trading involve unique sets of skills, and anyone can develop that skill. All you have to learn is how profitable traders THINK and what sets them apart from the rest. Well, there is no secret. Yuan Byeajee — A successful trader — has an article on The Thinking Process of Highly Profitable Traders.

Read this article to learn more about how successful traders think. Also, consider reading the Trading in the Zone by Mark Douglas. This is a good and must-read trading book for any trader. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. We Are… Trade Revenue Pro. We specialize in reverse trading. More Over Our Trading Technique Enable Everyone, Even Novice Forex Traders to Recognize and Ride the Trend Reversals with Higher Risk to Reward Ratio.

Trade Article. Daily Time Frame Forex Trading Strategy 3 Ways to Trade Daily Chart. Here are what we are going to talk today. For this, we are going to use Period EMA and 9-Period EMA.

Here is how to filter out the trending market using these two moving averages. Leave a Reply Cancel reply Your email address will not be published. About Us. Recent Posts. Buying Bitcoins Without KYS — Is It Possible? Read More ». pionex bot trading Read More ». Intraday Reversal Trading Strategy — How to Catch Big Reversals Read More ». Recent Trade Ideas. Why Do Most Day Traders Fail?

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The law clearly states that an object in motion stays in motion until an external force is applied. This category only includes cookies that ensures basic functionalities and security features of the website. Did you spot any Price action trade setup? So what are the confirmations that we can use to find the price movement around support or resistance? Today in this article we are going to talk about 3 profitable daily time frame forex trading strategies.

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