Best short term forex trading strategies
Short-term trading is one of the types of trade that are used the most since it can be very profitable. However, it is also one of those that produces the most risks and losses because they are often misused.
Short term strategies attract traders who are interested in making quick buy or sell decisions and make immediate profits. In this case, orders are opened in a short period of time and traders manage to make a profit by trading at lower terms. These people trade in more volatile periods.
- Candlestick Patterns: in this case traders look for reversible candlestick patterns and try to enter the market in the direction that is indicated by a previously chosen candlestick pattern. Then the signal will appear when the price breaks the level of the candlestick pattern. All these operations must be preceded by stop loss.
- Support and Resistance: For this you must determine the support and resistance levels specifically in periods of time that are higher. Now, in these intervals, you are going to see how significant levels of support or resistance are formed, this implies that you must identify these levels.
- Intraday trading: this method is used by traders who want to trade in one day and thereby hold a position for several hours. To achieve this, time period charts from M5 to H1 are chosen.