The foreign currency market, known as Forex, is usually addressed by professional traders, in terms of technical analysis, graphical analysis or fundamental analysis. To anticipate the market either you stay hanging over the economic information, or you open your trading platform pro ( Metatrader, of course) and you choose the correct unit of time and the best technical indicators to analyze price trends and detect the famous signal to open a position and swing a ticket package at your own risk and peril.
To start, you’d better choose good trading software (eg MT4, MT5). You must be able to analyse the course of your favourite currencies (EUR / USD?) Over a long period of years ( even 10 years if possible)
Choose a Forex broker authorized (FCA : Financial Conduct Authority) in your country .It’s better if he’s also regulated.
Open a demo account trading for testing live (or almost) on your broker website.
You will finally be able to simulate your Forex trading strategies.
The triple tops or triple hollow
The first chart pattern to be detected is a set of three peaks or three troughs. It is a cycle, which means that the same movement will be repeated three times before the tip trend in the opposite direction to that of the previous three summits.
Double or triple peaks appear after an up trend and indicate a likely downward trend while double or triple hollow appear after a down-trend and indicate a likely upward trend
Breakout and closing strategy
The breakout strategy and closure is deemed profitable as it would choose the right entry point to take advantage of trends.
This Forex trading strategy requires optimal conditions :
• The market must be frankly bullish or bearish and begin a slight correction.
• The breakout or break, must be evidenced by a long full candle called “momentum” which shows a strong interest of traders and is distinguished from false breaks more common.
The Forex market is very liquid and traders can open many positions per minutes. Many traders are engaged in scalping, so they speculate on low profits (a few pips) but hundreds of times a day. To be profitable, scalping is used with currency pairs with the lowest spreads.