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How to Build the Best Forex Trading Strategy?

Best Forex Trading Strategy

To build the best forex trading strategy is a dream, hard-working thing and key to the success of a forex trader. To be a consistently profitable trader it has no alternative. A successful forex trader means a proven and maximum times winning forex trading strategy owner trader.

A carefully planned and backtested Forex trading strategy will help you to follow this strategy. It makes it easier for you to follow your strategy and also help maintain your discipline if necessary. It is a very important thing however, to consider the correct strategy to use in order to achieve a reliable trade strategy. Forex trading strategy provided entry signals but also entry signals. It is advisable to follow the trading rule if you are entering or exiting a trade. It is important to follow the rules in a trading strategy and stick to them when you want to do a trade.

So you must have to engage all of your efforts in forex trading, how to build the best forex trading strategy. Which would have been given you consistent profit always. In this article, we are expressing some words for helping you to build a forex trading strategy that is effective in your trading success.

What is Forex Trading Strategy?

Which circumstances and which rezones can a trader get entry in a trade, which calls trading strategy. It’s all about trading techniques, systems, edges and trading style. Trading strategy build with some disciplines and fundamental analysis or technical analysis. A trader always obeys these rules and analysis strictly and consistently for buy-sell in the forex market. Always consider as a trading signal by the strategy maintainer trader.

A forex trading strategy provides traders with insights about when and where to buy or sell a currency pair. Some forex strategies may work better when used differently for certain occasions. Some trading strategies exist and each requires varying levels of technical and fundamental analysis.

Basics of various types’ strategies

There are so many types of forex trading strategies. It could be thousands or more. Which can be perfect and recommended for you, it is a very confusing and argumentum thing. Trading strategies vary man to man, different strategies suit different people.   And different traders are successful by using different strategies. But we believe there are some common things or elements that are necessary to take for building the best forex trading strategy. Which are we going to discuss-

Fundamental and news trading strategy

The fundamental strategy is widely used in trading. Especially big market participants and institutional traders are using this strategy maximally.  As a retail trader you can’t avoid it totally. Fundamental strategy built with such a matter and condition which can make a perception upon any currency or forex market’s related products worse or good thing. Being the analysis is better than anticipated, its demand would be high and the price could be high. As the same analysis shows the worst of the currency or other products than anticipated the demand becomes low and the price would fall. The currency pair’s fundamental analysis is done by economical condition and geopolitical condition information base. And traders always get this information by news and forex news. So this fundamental strategy is another name is news trading strategy.

Supply-demand or support-resistance strategy

When there is a market there the game of supply-demand. Any market’s price is always driven by the supply-demand cycle. When the supply more than the demand of any products, assets or services than its price falls down. As a counterpart when the demand is higher than supply then price becomes high. Forex is the big financial market in the world, so the supply-demand economical concept hundred percent works in this market. Every big market participant has been doing trade with supply-demand labels. In the forex market when we meet at the demand label it calls to support and when we meet at the supplied label it calls resistance.

Forgiving definition, we can say support is a price label or price zone where a buyer enters the market and resistance is a price label where a seller enters the market. Support-resistance both labels are historical labels, the price has been respected the label again and again, and repeat. More the label, respect the label is strong. Price comes to the label and returns back to the opposite direction.

There are mainly two types of support resistance, Major support resistance and Minor support resistance. But when a supporting label breaks through it becomes resistance also when resistance has broken through it becomes support. Old support becomes new resistance and old resistance becomes new support. Which price label acts as a combined support resistance gradually, this label call, support resistance zone.

So when you want to build a best forex trading strategy you must build it with support resistance . And make a strategy as, buy-in support or demand label, sell in resistance or supply label. Because in the forex market it is a very proven thing that supports resistance works more than eighty percent times. But to apply it perfectly you must need to know how to mark support resistance properly? What is the major support resistance label? What is a support resistance zone? What is dynamic support resistance?

See the picture of support resistance buy sell

Trend trading strategy

Trend is a friend”. It is a universal truth in forex trading. Trend trading strategy is all time a high winning strategy indeed. To trade with the trend, trading with the big market player. Because big market players enter the market and control the market and manipulate the price movement toward their expected target, and make trends. So, trade against the trend trade against the market controller and trading gain is tub.

What is the trend? The trend is the market price movement direction. Which direction the price has been moving, it calls a trend. When price moves upward direction it calls uptrend. When price moves downward direction, it calls for a downtrend. When price moves within a range it calls, sideways trend. Like this there are three types of trends.

A best forex strategy couldn’t build without trend trading. But for building a trend trading strategy you must know how to identify the trend. Which time frame chart is perfect for trend identification? It has no obligation. But a higher time frame is best. Like as, H4, D1, weekly. For big movements, catching trend trading is best. In an uptrend market, you could be taken a buy trade entry and in a downtrend market, you could be taken a sell trade entry. In the sideways market, you get a buy entry at the lower label and a sell entry at the upper label of the sideways market. The sideways trend trading calls also range trading strategy. You must know together with trend identification what Swing high is and what Swing low is?

See the picture of trend trading-

 Break out strategy

 Break out strategy is a very high winning ratio strategy. So many professionals are trading with this strategy. It caused a big movement of the market price.

When price breaks any technical label, pattern, range, consolidation label, it is called a market breakout. Like as, support –resistance breakout, trend line break out, chart pattern breakout, ranging market break out, etc. Price breaks through prevailing price movement and goes counter to direction. For as support break means price go to down, resistance break goes to up, uptrend line break goes to down, downtrend line break goes to up, etc.

But break out trading is often so risky. Because, without knowing break-out confirmation, it could be a loosen trade entry. Some time’s break out couldn’t exactly happen, it could be a false breakout. So learn what is break out confirmation?

See the picture of support resistance breakout-


What is pull back? Pull back strategy is a high probability buy trade entry strategy. In a prevailing uptrend, when market price has gone up , but the price returns back a little bit  down and stops at any technical label, after touching the label it again resumes to go upward, it is pullback.

See the pullback picture-

What is retracement? Price retracement strategy is fully the opposite of pullback. It is a sell entry strategy. In a downtrend, the first market has to go as low as possible low, then the market price again returns back a little bit to up, and touch or retest a technical label, after retracement price again starts to fall down, it is a retracement.

See the picture of price retracement-

Indicator based strategy

In forex trading strategy some indicators are used widely. And you can also build a winning strategy with indicators. Like moving average, RSI, Bollinger band, MCD, ADX, Fractal, etc.

A very well-known indicator name is moving average. There are two types of moving average-simple moving average (SMA) and Exponential moving average (EMA).EMA is collective faster data than SMA. We prefer EMA. This indicator is used as dynamic support resistance always.Generelly, 200  ema/sma, 100ema/sma, 50 ema/sma, 20 ema/sma are popular in trading.

Moving average is also used for trend identification widely.

See a picture of 20 ema as resistance-

Candlestick pattern/chart pattern/ price action strategy

Now in the trading world, the candlestick pattern is an unavoidable strategy. Any trader cannot find out who is not using candlestick charts on trading platforms. So building a trading strategy with a candlestick pattern is a very trading helpful strategy always. There are a lot of candlestick patterns are exist. You should not take so many candlestick patterns for building strategy. But you need to take some important candlestick patterns for building strategy. Like as-Hammer, Shooting star, Evening star, Morning star, Bullish harami, Bearish harami Pattern, Dark cloud cover, Pricing line, Doji, Bullish engulfing, Bearish engulfing, etc.

See the picture of the candlestick pattern-



Price action trading strategy is now well known as the strategy of successful and profitable traders. So many professional forex traders have been traded with price action strategies. And actually, it is a very high probabilities trading strategy. To learn about price action for building the best forex trading strategy. A very well-known price action setup is – Pin bar, Inside the bar, Engulf bar, tail bar, rejection bar, Reversal bar, etc.

See the picture of price action-

The chart pattern is another forex trading strategy that is a very popular and high winning strategy. It is also a price action-based strategy. You can build a high probabilities strategy by chart pattern. Important chart patterns are-Double top, double bottom, Head& shoulders pattern, Inverted Head & shoulders pattern, Flag pattern, Ascending triangle, Descending triangle, Symmetrical triangle, Pennant, Rectangle, etc.        

Day trading, swing trading, positioning trading, scalping strategy

To build a trading strategy you have to determine which type of trading style you want to take. It is building with how much the time or pips let you trade running. Like as, if you take scalping or day trading it must have to close within a day, if you want to do swing trade it has no definite time, it can close within a day or more days, even more, week, it depends when your target fill up if you want to do positioning trade it can take one month to one year.

How to build the best forex trading strategy?

We previously have discussed the elements or materials for building a trading strategy. Now we show how to use it with building a strategy. It is very important to think about your trade execution and trading strategy to find the best one. And important to follow a logical and consistent strategy that you can follow when you are trading.

We prefer building a trading strategy with trend trading. Because trend trading is Holy Grail, and maximum times win results are full. Absolutely, no strategy works like a trend trading strategy. We build for strategy the support resistance label. Of course we know support or demand label and resistance or supply label work always in any market.

So our strategy is, get buy entry in an uptrend market at support label after getting signal by a bullish candlestick pattern.

See the picture of the strategy. We use bullish Engulfing candlestick pattern-We also use 20 Ema for trend confirmation.

As same we are going to give another strategy example of sell entry. In this strategy, we also take the sell entry in a downtrend at the resistance label after getting the bearish price action Pin bar signal. And we also use 20 Ema for trend confirmation.

See the picture-


No best forex trading strategy cannot work hundred percent and always win. So when you build any strategy you must use it with money management and risk management. Then you will get the winning result.