If you are making attempts to become a successful trader, you must develop your own strategy. Since there is no a standard trading strategy in the trading practice that would fit for all traders, you need to create one that would be suitable by all aspects.
There are traders who use only technical analysis when trading, while the other ones are guided by the fundamental analysis. At the same time, there are traders who use both technical and fundamental analysis to figure out the most suitable points of the market entry and exit.
Speaking about technical analysis, it represents a concept that trends move the prices. Each movement on the market has its image. If you get the necessary understanding of those trends, a successful and efficient strategy is guaranteed. For novices it is better to study each instrument separately so that you get practical knowledge of those instruments.
There are many trading strategies that contain support and resistance levels. The support applies to the price level, which is the basis. The resistance levels are upper prices. These levels have basic price movements only during a certain period of time. When currency prices break through the price support and resistance levels, they continue to move up. To find the support and resistance level it is necessary to examine price diagrams of unbroken support and resistance levels. This analysis may be carried out anytime. These levels help traders understand when it is better to enter or leave the market.
Moving average is another instrument for developing a trading strategy. Simple moving average or SMA shows the price in the period of time set by you. These moving rates help to remove short-term price fluctuations and determine a clear and broad picture of the market events. Traders usually use move average in order to figure out a trend of prices future increase or decrease.
To carry out a thorough analysis of the Forex market, a trader should possess a number of trading instruments. If there are indicators that show the market started to move in a particular direction, a trader might rather enter the market confidently, counting on the signals of one indicator.
A basic analysis can be carried out taking into account the same strategy. Each trading strategy must offer a clear guidance related to the time, when it is better to enter or leave the market, and what movements are expected.