Forex can be traded in numerous ways, so it is very important that you go with an approach that suits your experience level, budget, and trading goals. Having a proper understanding of the market you are entering into and the strategy that is needed can be the difference between trading success and failure.

Choosing a 外汇交易 strategy is similar to buying a new car. There is a lot of choice, and they come in different shapes and sizes. It is also important that you test drive a new strategy via a demo account, before proceeding with it on the real-world markets.

What is a Forex Trading Strategy?

A forex strategy is a method that forex traders use to help them decide whether to buy or sell a currency pair at any given time. They involve the use of specific trading techniques, with the aim of generating profits from the purchase and sale of different currencies.

There are many trading strategies in existence, and they can take the form of manual or automated trading signals. Modern strategies exist in the form of technical or fundamental analysis, or can be based on news events. Manual strategies involve a trader looking for trading signals themselves via manually searching on a computer. Automated strategies are where an algorithm, developed by a trader, locates these signals and executes them automatically, without being aided by human input.

An effective strategy is one that enables a trader to properly analyze the market and execute trades with confidence using sound risk management techniques.

Types of Forex Trading Strategy

There is no “one size fits all” approach when it comes to a strategy being suited to every one. Different strategies will suit certain traders more than others. See below for a brief outline of some of the main types of strategy available.

1. Trend Trading
   This is one of the simplest forex trading strategies, and also a reliable choice. It principally involves the attempt to yield positive returns by exploiting the directional momentum of a market.
2. Price Action Trading
   This is where historical prices are studied as a way of formulating technical trading strategies and can be utilised as either on its own or with an indicator.
3. Range Trading
   A strategy that includes detecting support and resistance points, in which traders place trades around the key levels. Technical analysis is a primary feature of this strategy.
4. Position Trading
   This is more of a long-term strategy, compared to the other choices available. It focuses mainly on fundamental factors, but technical methods can also be used.
5. Day Trading - (日内交易)
   A short-term strategy that is designed to trade financial instruments within the same trading day, which means that positions are closed before market closing.
6. Swing Trading
   This is a speculative strategy whereby traders look at the trending markets, as well as looking to take advantage of the range-bound by buying and selling at the support and resistance trendlines.
7. Forex Scalping
   Under this strategy, scalping is the process whereby a trader takes out small profits on a regular basis, which can be achieved by opening and closing multiple positions over the course of the day.
8. Carry Trading
   This involves the borrowing of one currency at a lower rate, before then investing in another currently at a much higher yielding rate.

Choose Your Strategy Wisely

As outlined above, there are many choices available to you, when it comes to selecting a forex trading strategy. When considering which trading strategy to go with, it is worth taking the time to analyse the risk-reward ratio. Also, figure out the amount of time investment is needed for each trading strategy, and select accordingly.

Ultimately, each strategy will be suited to different traders, so it really does depend on your personal circumstances, how open or averse you are to risk, and the amount of time you dedicate to trading. The best piece of advice is to match your trading personality with the appropriate strategy, as this will help to set a solid foundation on which to build your trading activity.

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The rise of the US yields may resemble expectations of a reflation in the US economy which were further supported also by Biden’s plan for a wide infrastructure spending. In a White House confirmation it was noted that the US President will be outlining how the US would pay for the $3-$4 trillion infrastructure plan on Wednesday. The plan is to be heavily debated, yet it should be noted that Democrats have a majority in the House of Representatives and score a tie in the US Senate, which could make the passing of such a bill as plausible. Gold traders should consider the announcement as a key risk event in the coming days.

Such plans could provide further support for the USD, which tends to maintain a negative correlation with gold’s prices as the precious metal is denominated in USD. It’s not by accident that since Monday the USD has been rising, while at the same time gold’s prices have been dropping. It should be noted that there were some solid figures deriving from recent financial releases which tended to keep optimism for the recovery of the US economy at rather high levels. It’s characteristic that the GDP rate accelerated more than expected for Q4, while Consumer confidence improved in March. In addition to the allready mentioned indicators, we must note that the weekly initial jobless claims figure dropped more than expected, actually reaching the lowest level since the start of the pandemic, creating some hopes for a tightening of the US employment market. Also, the rapid pace of the US vaccination program contributed to such an optimism given that it could lead to a quicker return to some sort of normality. On the flip side, the uncertainty created by the collapse of a hedge fund named Archegos Capital could create some support for gold’s price, yet we must note that the market worries may have eased today. It should be noted though that global banks my occur substantial losses from the downfall of the hedge fund with Goldman Sachs, Morgan Stanley, Nomura, Deutsche Bank and UBS shares dropping, while Credit Suisse also warned of major losses enhancing the uncertainty in the markets on Monday.

As for major risk events we would like to highlight some financial releases with special emphasis on the US employment market, which could create volatility also for Gold’s price. On Wednesday we get the ADP national employment figure for March while on Thursday the weekly initial jobless claims figure as well as the US ISM manufacturing PMI. The riskiest release though is expected to be on Friday the US employment report with its NFP figure and the unemployment rate. The release could create wide volatility with rippling effects also on the US stockmarkets as well as gold’s prices, so caution is advised for gold traders.

技术分析

XAU/USD 4H chart

Gold’s price is in the retreat since early Monday abandoning the sideways movement characterizing its price action in the past week and breaking the 1720 (R2) and today the 1695 (R1) support lines with both levels now turned to resistance. We maintain a bearish outlook for the precious metal as long as the downward trendline incepted since the 29th of the month continues to guide its prices. On the other hand, we would like to note that the RSI indicator below our 4-hour chart has surpassed the reading of 30 to the downside (circled in red) and could be implying that the precious metal is oversold and a correction higher is possible. Should the bears actually maintain control over the precious metal’s prices, we may see it breaching the 1670 (S1) support line, thus reaching a new record low since the 5th of June 2020, while even lower we have noted the 1640 (S2) support level. In an ultimate bearish scenario, we may see gold’s prices breaking the 1605 (S3) support barrier. Should the bulls take over, we may see gold’s prices breaking the 1695 (R1) resistance line aiming for the 1720 (R2) resistance level, which was also the upper boundary of the precious metal’s past sideways movement. Even higher we note the 1755 (R3) resistance hurdle for the shiny metal.

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