Technical Forex Strategies

Technical analysis is very important when trading forex or any other asset. The fundamentals might set the direction of a pair, but the technical analysis dictates the entry and exit levels of your trades. If you ignore the technicals, you may end up losing even if your analysis is impeccable. Therefore, FX Leaders continuously updates its technical forex strategies to reflect the changing market conditions and help you identify good entry and exit points, as well as how to manage yourself when in a trade.

ADX (Average Directional Index)

How many times have you entered into a trend only to find out that it has already run its course and you were too late? Many of the Forex trading strategies that we use help us predict which way the market is trending and whether to expect a bearish or bullish trend, but give little or no indication as to the strength of the trend. Sometimes these ... Full Article

Candlestick – Forex Trading Strategies

Candlestick charts are the most common chart types used by retail traders and investors. There are many other types of charts such as line charts, bar charts etc., but they don't tell the story of past price action like candlestick indicator patterns do. When active trading is based solely upon technical analysis, projecting future price action is ... Full Article

Divergence Trading Strategies

Apart from fundamentals, traders and analysts of financial instruments use a number of indicators to figure out what might happen to the price of a certain instrument. These indicators offer a simple method of recognizing patterns and predicting which way the price will trend. In essence, these indicators are what makes Forex signals possible. T ... Full Article

Elliott Wave Theory: The Background

New strategies breathe life into the market, so we are presenting the ‘Elliott Wave Theory’, named after Ralph Elliott. Having nothing in particular to fill his days, Elliott turned his attention to stock market behavior and developed his theorem in his later stages of life. Born an accountant, he retired at age 58 after catching a virus from a tri ... Full Article

Fibonacci Indicator

The Fibonacci trading strategy is one of the most well known and commonly used long-term technical strategies on the forex. It attempts to place price action in the proper context by using the Fibonacci sequence, a close representation of the historical “Golden Ratio.” Fibonacci numbers are not only frequently used in the financial markets but are ... Full Article

Head and Shoulders Strategy

We have already discussed ‘Candlestick Trading Strategy’ which allows us to understand the candlestick charts and what each candlestick indicates. However, to really become a master of the charts, we must learn about a few common chart patterns and what information we can draw from them about the future. The ‘head and shoulders’ pattern is one o .. Full Article

Hedging – Forex Trading Strategies

Traders of the financial markets, small or big, private or institutional, investing or speculative, all try to find ways to limit the risk and increase the probabilities of winning. There are many approaches to trading the Forex out there and a viable hedging strategy is among the most powerful. In fact, hedging is one of the best ways to optimi ... Full Article

Horizontal Levels

Horizontal Levels is one of the simplest yet incredibly useful ideas in Forex trading. Horizontal levels are fundamental in most Forex trading strategies and aid us in analyzing charts. However, they can also be used on their own as a strategy rather than just a tool for other strategies. By watching the most obvious price changes and drawing their ... Full Article

How to Read and Trade Forex Price Action

Forex trading can be as difficult or as easy as you want it to be. Indicators and strategies can make trading much easier. Being able to read and understand forex price action is one of the most useful ways to trade currencies. Price action analysis was first introduced by Charles Dow, who laid the foundations for modern technical analysis. Si ... Full Article

The Importance Of Liquidity In The Forex Market – Forex Trading Strategies

Liquidity has been an important factor since ancient times and it continues to this day. A person, company or a country can be very wealthy but if they don´t have enough liquidity or liquid assets they can bankrupt easily. Very often we hear about liquidity or the lack of it, during financial crises (like the financial crisis of 2008). Some reputab ... Full Article

Trading Forex According to Available Funds and Time

If you are reading this article, it´s very likely that you are a forex trader - or at least want to be one. Traders share a common love of trading currencies and like the benefits that came with the job. Yet, sometimes we get carried away and incorrectly trade forex; we refuse to acknowledge some important aspects of forex trading that eventually t ... Full Article

How To Trade Shooting Star Candlestick Patterns

Candlestick patterns are among the most reliable trading techniques for traders. When it comes to the shooting star candlestick pattern, we must differentiate between a bearish shooting star and a bullish inverted hammer pattern, which is very similar yet gives a completely opposite signal. While shooting star patterns are very easy to identify, it ... Full Article

Trading with Ichimoku Strategy

Looking at cloud-based indicators such as Ichimoku. What Is Ichimoku Trading? The Ichimoku trading strategy is an abbreviation of “Ichimoku Kinko Hyo,” developed by Japanese journalist Goichi Hosoda in the 1960s. This technique has been popular in Japan for quite some time, gaining popularity in other parts of the world as well. Ichimoku ... Full Article

Trading with the Elliot Wave Theory: Part 2

Previously, we published an article where we explained the development and workings of the Elliot Wave Theory. This principle is useless unless implemented in everyday trading. In this article, we will explain how to successfully trade with the Elliot Wave Theory (EWT). To recap, when you use EWT you trade the probability which this system offer ... Full Article

Triangles and Wedges Strategy

We have covered most of the important technical chart patterns in our strategy section. There are still some strategies left though. “Triangles” and “Wedges” are two of the 10 most important chart patterns and in this article we´ll explain how to trade them. It´s true that they are different patterns, but they are very similar so we´ll teach both o ... Full Article