My 4 Best Intraday Trading Techniques

 

Forex intraday trading strategies are speculative strategies used for selling and purchasing financial instruments in the securities market within the same trading day. Day trading occurs within a short time period, and therefore market players need to find the best intraday forex strategy with the aim of succeeding in their transactions.

Numéro de téléphone Veuillez compléter ce champ. Le stochastique lent est un oscillateur comme le RSI qui vous aide à localiser les environnements surachetés et survendus. Comment Name Email Website Subscribe to the mailing list. Below, we are going to investigate the most widespread forex trading intraday strategies. The middle line is used as a simple moving and defines the main trend direction.

Intraday Trading Techniques

Nevertheless, Forex trading systems in the interval less than a day make not a daily profit for many traders only, but also the perfect combination of energy spent and the income which was made. I would like to show you an example of a simple trading strategy which uses two indicators only.

Stocks enjoy excessive demand in the market, and are overpriced, i. Under the news playing forex intraday strategy, the investor purchases stocks as soon as some positive news are obtained regarding the expected growth of such stocks' price, or to the contrary, sells stocks as bad news emerge.

The factors which may make the investor use the news playing intraday forex strategy may range fr om market factors such as investors' expectations, forecasted price fluctuations, negative or positive economic dynamics, etc. Therefore, in order to benefit from news playing, the investor needs to be well aware of the multitude of variables affecting market dynamics, and should be able to monitor closely any their changes for quick response.

This forex intraday strategy for trading stocks is based on the detection of small gaps in the buy-sell spread, and the initiation of a large number of short-term intraday transactions with small yields. A position within the scalping strategy is usually opened and closed quickly, with the aim of benefiting from the currently available price gaps. Due to the fact that the scalping forex intraday strategy is implemented within limited time periods usually 3 to 5 minutes, less often up to minutes , this strategy is rather risky, and it imposes several key requirements for the scalper to be effective.

Thus, first of all, the broker needs to process all bids quickly, as even seconds of delay may make the transaction ineffective. Next, scalping needs to be permitted for short-term transactions on the respective exchange.

Finally, great buy-sell spreads should be avoided, as they may minimize the already limited profit margin, thus making scalping financially ineffective. Scalping may be the best intraday forex strategy in the conditions of growing market volatility and fluctuations, which allows the market actors benefiting from the short-term imbalances occurring during those periods. Range trading intraday forex strategies are based on the investor's assumption that as soon as the price of stocks reaches its highest soil, it will fall back to its lows, and vice versa.

Therefore, when the price hits its upper soil, the investor sells, and to the contrary, when it reaches its lower soil, the investor buys. In practice, within this intraday forex strategy, the investors identified a channel with the lower level represented by support and the upper level represented by resistance.

This indicator allows you to work in a sideways motion, and in long positions as well. However, due to its interpretation and changes in the parameters, the Bollinger Bands indicator remains the difficult one for many traders. But here we will explain its signals in a simple way. So, the parameters are: The rebound from the top and from the bottom line of Bollinger Band is a signal for the orders opening.

Thus, the trade is conducted within the channel of price movement. The middle line is used as a simple moving and defines the main trend direction. Furthermore, two significant signal should be noted.

The first one is when the price does beyond the upper or lower Bollinger Bands. This situation indicates that the movement will continue. The second signal is a strong narrowing of the canal. The example is shown on the picture below. In this case, you should pay attention to the situation when the middle line meets the price graph, because it is a strong signal for opening of the order.

Thus, using the one hour interval on the Bollinger Bands line you can achieve the high accuracy of the price trend forecast. To draw a conclusion, we can say that the one hour Forex strategy can be made on the basis of almost any indicator, and the combination of any of them can be applied.

Check it out when you have the time. When a positive piece of news comes out you want to buy the market and when a negative piece of news comes out you want to sell. High frequency trading HFT algorithms, for example, are able to analyse and react to economic reports in a split second, making it impossible to compete.

In some cases you may want to take a position before the news item comes out. That way you may be able to manage your trade and get in before the move. Predicting the outcome of economic releases or earnings reports might not be possible but it is possible to analyse price action and to make careful risk-based bets. That means resistance, and when the good news wears off, or when bad news comes out, the market could easily fall.

Just recently, US non-farm payrolls came out worse than expected but the market barely budged. Markets take the line of least resistance, so when the bad news had been fully absorbed the market ended up going higher. Plenty of news releases have no effect but the best news releases for futures traders are listed below:.

The key with news trading is not to follow market sentiment; you need to work out what the market is expecting and if need be take a position against the crowd — if the probabilities are in your favor. News trading can be profitable but generally it requires quick thinking and a bit of preparation.

Scalping requires skill but is one of the most popular intraday trading techniques. The scalping method is to take lots of trades with short holding times, hoping to capture one or two pips here and there, building them up as you go. Increasingly, traders use algorithms to calculate minute inefficiencies in the market and scalp a couple of ticks here and there, particularly in the forex markets. It goes without saying that scalping requires extremely tight spreads, a lot of practice and a lot of skill.

However, another time that I will engage is if I see an opportunity come up that is too good to miss. They usually involve a great amount of uncertainty and emotion. So the key is usually to take a contrarian position trade the other way to everybody else then stay disciplined and try not to budge. This was an unforeseen event that caught many forex traders by surprise and sent some forex companies into liquidation.

But as you can see from the chart, there was also a massive over-reaction due to forced selling and taking the opposite side of the trade the very next day would have been the perfect time to buy.