All forex experts know that in order to be successful in the forex market, you must have the best forex trading strategy tools to give you an edge. It is also as important that your forex trading strategy must fit your personality. There are some forex traders who trade for a short term position (scalping), while; others are trading for a long term position (hourly, daily, or monthly charts).

Before you enter into a trade, it is important to have a pips goal with limits and stops. Every expert trader understands that the best forex trading strategy is not perfect everytime but it does give you a surplus at the end of the month; if you are willing to give it a chance. It is essential for a forex strategy to have 3 elements to be the best. These three elements are…

1. Resistance Lines – Every forex expert understands the importance of using resistance lines to produce the best forex results. Not, only will resistance lines will prove you with entry and exit to the market, but also provide you with limits and stops. Resistance lines provide with how high the market was willing to go and what lows it has rejected. If a resistance line gets broken, it will provide you with a signal to either go long or short depending on the direction the price action is moving.

2. Price Action Analysis – The forex market respects the currency price, while, the forex indicators and bots don’t. Since, this is a real market with real people trading, they know and see what price is being accepted and rejected. A forex indicator or bot, calculates based on previous market highs or lows and odds of winning. All forex experts know that a forex bot or robot is no different from gambling. In order to succeed in the forex market, you must understand and analyze the price action. Draw an up, down, or straight line to get a better picture on where the market maybe heading.

3. Japanese Candlesticks – One must look at the Japanese candlesticks as more then colors but as the “psychology of the traders”. The Japanese candlesticks provide very important information such as, how are the traders reacting to a certain price, have the traders accepted or rejected the latest movement, and what direction is the forex market moving.

Again, I will recap that in order to have the best forex trading strategy you must have resistance lines on your chart, follow the price action of a currency, and understand the Japanese Candlesticks psychology.

By: Al Habib