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16th December 2016
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Intraday Trading For Beginners: Two Easy To Use Strategies

Day trading is a type of forex trading in which the buying and selling deals open and close on the same day. Traders can make as many trades as they want within one day. It is possible for the deals of the day trading to last longer than a single day. A majority of traders refer to trade short term (Day trade). It is a very lucrative method of trading, but it is risky as well. Day traders need to follow good risk management tips, trading skills and exercise a few strategies to avoid negative consequences. Here are some day trading strategies that will help traders to earn profit. (Information courtesy: www.cornertrader.ch )

Moving average strategy

Moving average or MA indicators are the most standard and the most widely used within all trading platforms. It is also easy for the new currency traders to use this indicator in order to benefit from the market. The traders can set different criteria that they prefer. The moving average cross over strategy is considered very helpful for the traders. Three moving average lines are needed for this strategy. The moving average lines are calculated as per periods. In this strategy, three different periods are set as per the choice of traders. 20 periods, 60 periods and 100 periods are the most commonly set periods which derive better results. The shorter time frame provides fast moving average, the middle one shows slow moving average and the longer frame is a trend indicator. The signal of buying is generated when the short period MA crosses over the mid period MA while moving upwards. When the short period moving average moves below the slow moving average while crossing it, a selling sign is generated.

The trend indicating MA or the 100 MA helps the trader to learn about the trends in price. If the prices stay over or below consistently, but don’t cross this MA line, traders can let their trades run longer. But if the prices are not consistent and move over or below the line, trend reversal can be indicated.

Candle stick patterns

Candle sticks are one of the easiest indicators that can be learned and used by the traders. The candle sticks appear in patterns. When real body of a price candle covers the real body of one or more than one preceding candles, an engulfing pattern is formed. The powerful signal is indicated if more candles are engulfed. There are two types of engulfing patterns- bullish and bearish.

The bullish pattern shows the bullish market or the bullish rise head while the opposite is true for the bearish pattern. If the bullish engulfing pattern appears, it is a signal of a larger upward move in the prices. When a trader witnesses engulfing pattern taking place, they must be patient till the next candle appears, after which, they should open their position. They should place the stop at the low of the engulfing candle.

Bearish pattern is an indicator of bigger decline in the prices. When the bearish pattern is taking its form, traders must wait for the following candle to appear, before they open their position.

There are other patterns that form in candlesticks, like hammer pattern. There are other pattern strategies that help traders to trade better. What do you think about the strategies? Are there any better suggestions that you would like to share?

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