Previously, the forex market is limited only to long-term investors, banks and people who have greater capital. trade takes place through an agent or voice broker who will inform the client about what was happening. Then, it has been replaced by a computerized automated system online. This is the initial form of forex trading strategies.
Traders are either home based or office-based or retail investors may be able to trade in real time with different banks with the help of brokers. Broker then uses the computerized trading platform online.
Forex trading strategy consists of two main strategies. The first strategy is based on technical analysis of the chart / indicator charts. This helps in determining the level of support and resistance price. As a rule absolutely clear history can be repeated, like what has happened previously in the forex market can still happen in the future. Graphic patterns that occurred in the past can be used to predict the future.
The method is very accurate and popular in the calculation of the level of resistance, support is the Fibonacci. Seven hundred and fifty years ago, Fibonacci discovered a serial number. Its proportion is also found in nature such as sunflower seeds. This method is commonly studied in mathematics in the days of your high school, known as the Fibonacci sequence. He said about finding the next number given with a series of numbers.
If the Fibonacci numbers placed near each other, the percentage ratio was obtained. This can then be plotted on the chart. However, you do not need to be a mathematician to do just this. Forex charting software is able to do the Fibonacci sequence for you. Fibonacci sequence combined with appropriate indicators can show the strength and momentum of current market conditions. This will help you create a strategy that will be most beneficial to you just by basing on the rules of mathematics.
The second strategy is fundamental analysis. Every day, there is transmitted to the figures to reveal some of the economic circumstances of a particular country. Take for example, non-agricultural wage rates that may bring unexpected effects in the forex market. The most important rule for beginners even for veterans is to protect yourself from the market when important announcements occur.