5 Exceptional Forex Trading Strategy You Can Use in MetaTrader 5

Forex trading strategy is a system that determines the most-appropriate time to buy or sell in the FX market.

It is known that various strategies can be used by traders including fundamental analysis and technical analysis.

To determine a good trading strategy, the trader must confidently execute their trades in the market accompanied by viable risk management plans that they should use in a reputable trading platform like MetaTrader 5.

How To Determine If The Trading Strategy Works?

Different factors are put up together to formulate a good trading strategy that works best for you.

Although there are strategies that are tested and proven by experts in trading, it is also very important to follow a strategy that you are confident about.

Since no trader is the same, the goals, as well as resources, should be taken into consideration when you select a suitable strategy.

Three Criteria To Use When Comparing the Best Strategy To Use

  • Time Resources
  • Frequency of Forex Trading Opportunities
  • Distance to Target

Comparing the Strategies Used in Forex Trading

Price Action Trading

This is all about the study of prices that helps in formulating certain technical forex trading strategies.

This strategy can be utilized even as a stand-alone strategy together with an indicator.

The length of trade for the price action varies, either long, medium, or short-term.

One of the reasons why price action is preferred by many traders is due to its multiple time frames.

Methods to Determine Exit/Entry Points

  • Oscillators
  • Fibonacci Retracement
  • Using Candle Wicks
  • Indicators
  • Trend Identification

Range Trading Strategy

This strategy involves identifying resistance and support points where traders can place their key points.

The Range Trading Strategy works best in a market with no noticeable trend or significant volatility.

The length of trade for this strategy is not set as the range of bound strategies works well at any given time frame.

Methods to Determine Exit/Entry Points

  • Relative Strength Index (RSI)
  • Stochastics
  • Commodity Channel Index (CCI)

Trend Trading Strategy

Trend Trading is a strategy that is used by a lot of traders because it is simple and newbies can manipulate it well.

With this trading strategy, it yields positive returns thru exploiting markets of directional momentum.

The length of trade for this strategy is medium to long term.

Methods to Determine Exit/Entry Points

  • Relative Strength Index (RSI)
  • Commodity Channel Index (CCI)

There are also pros and cons in a trend trading strategy. The pros include a favorable risk/reward ratio and a good number of forex trading opportunities.

The cons will be the lengthy periods of investment and the high regard for technical analysis.

Position Trading

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Position trading is a strategy that is long-term and focuses primarily on fundamental factors. But technical methods can also be used in it.

Markets with smaller market fluctuations are not recommended for this strategy. But this market is highly recommended for stocks and Forex.

Day Trading Strategy

This strategy is mainly designed for trading financial instruments on same day trading. This means all positions will be closed down in MetaTrader 5 before the market closes. 

The length of trade in this strategy is very short-term and can only last for a few minutes to several hours.

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