This article looks at the use of trend or range forex trading strategies.
When you look at forex trading strategies you need to consider whether you are going to be using a trend or a range strategy. To determine this you not only have to look at the strategy that you are going to be using, but what trading you want to do. If you want to trade with the trend then you have to consider all the forex trading strategies that will help you with this.
Choosing the Trend or Range Forex Trading Strategies
The first step that you have to take when you look at the forex trading strategies is determining the type of trading that you want to do. To do this you should consider what your training tells you about the different ways of trading. Mist traders assume that trend trading is the easier option. However, you have to consider whether or not this is actually true. If trend trading was so easy then more people would be making a profit from the trends in the market.
When you choose between the trend and the range forex strategies you have to consider how this is affected by your personality. Your personality will affect the trading that you can do. If you are not comfortable with the trading that you will be doing on the trend then you should not use these strategies. Only you will be able to determine whether you should be trading with the trend or with the range.
Trend Trading Strategies that You Use
If you determine that you are going to be using trend strategies you have to consider the points of the strategies. The first point of the strategy is the timeframe that the trend strategy will work with. Trends will form in any timeframe and you need to consider this. However, not all traders will be able to trade in all the timeframes. All traders will have a single timeframe that they are comfortable trading in.
The analysis that you use should also be considered when you are trading. It is possible to trade on the trend with technical analysis and with fundamental analysis. You need to consider the analysis that you are most comfortable with completing. There are some traders who are more comfortable with technical analysis and other traders who are more comfortable with fundamental analysis.
The Use of Range Strategies
If you do not want to be trading with the trend then you should consider the use of the range strategies. There are a lot of traders who do not want to trade with the range strategies. This is due to the fact that many traders feel that ranges are not as common as trends. There are also a number of traders who feel that range trading is riskier than the trend. This is due to the fact that it is harder to determine when the price action will breakout from the range. When you have a breakout you will have to trade with the trend.