Day Trading Forex Strategy. Rules and Forex advises.

FOREX Rules for Traders Working with the Day Trading Strategy (Short Term Strategy).

What is the Day Trading Strategy on the Foreign Exchange Market?

Forex Strategies: Day Trading - short term strategy.

We’d like to outline some rules of day trading for beginner and professional Forex traders. This strategy focuses on short-term trading operations, about a day in duration, if not just several hours. Forex day trading strategy is an aggressive style of earning money short term. Traders operate with a lot of orders in different or same currencies. For example day trader can open some orders in EUR/USD, and at the same time have orders in other currencies.

Day trading strategy requires careful attention. During the working hours traders must check changing market conditions, such as signals from Forex technical indicators and financial news, at all times. 

While using this strategy day traders usually use a time frame of one minute, five minutes, fifteen minutes, and seldom - one hour. Generally, Forex day trading generates profits at the end of the trading day. Usually all open orders close at end of the trading session and open at the beginning of the next trading session, with Forex operating daily, except on weekends and holidays, when the value of trading operations is too low. That means that some open positions of day traders, if profitable, can be completed in just several trading days.

In one trading day a day trader can open and close ten-twenty orders in different currencies, though all movements on the favorite currency pair need to be carefully followed and analyzed.

In our opinion the following indicators should be used for technical analysis: moving averages for a small update period, Fibonacci levels with Elliot’s waves theory for small time frames, fractals and a custom ZIG-ZAG indicator for understanding all movements, except noise.

7 Rules for Forex Day Trading strategy: 

Rule 1. Do not open a Forex transaction during the closing of the trading session.

Forex Trading Sessions Hours

Do not open the position during the closing of the trading session, for the currency pair Euro to US Dollar is the distance of the order of 100-150 pips. Do not open the transaction if the distance was overcome.
We all know that Forex charts are moving in the vibrations. And usually in one trading session charts will move in one direction, moving backwards during the next session. This happens because some correction is needed for the first movement, after a strong trend. Our advice is to try and trade through one trading session to catch up to the direction.

Rule 2. Do not trade in the backward direction during a trend. 

Rule#2 of Day trading Strategy.

Do not trade in the backward direction during a strong trend, if your order was closed by a stop loss. Try to open the same position after creating fractals from the correction of these strong movements. During a strong trend open orders only from created correction fractals.

Rule 3. Try to use transactions only during one trading session. 

Using this rule helps more traders to save money and close positions with profits before the situation with movement of currency pairs changes. Start of a session - open your orders, close of a session - close your orders.

Rule 4. Do not trade if moving averages cross the your working currency pair chart. 

Rule#3 of Forex Day Trading Strategy

Rule 5. During the flat situation on the currency pair chart, try opening transactions in depth of the horizontal channel. 

Flat on the Forex is usually horizontal or a small sloping channel with same fractals. So, flat on the Forex chart like an aisle.

Rule#5 of Day Trading Forex Strategy

Rule 6. Do not install a stop loss more than a session distance, that took the currency pair.

Rule#6 of Forex Day Trading Strategy

Day Trading - is a short-term trading system on the financial markets. Example of an open order from the upward trend on the EUR/USD Do not open the position during the closing of the trading session, for the currency pair Euro to US Dollar is the distance of the order of 100-150 pips. Do not open the transaction if the distance was overcome.

Rule 7. Open orders only in the third wave. 

Rule#7 of Day Trading Forex Strategy

While day trading, open transactions only in the third wave by Elliot and you will see a stable profit.

Independent FOREX Research is a personal informational blog about the foreign exchange market.

Tags: Forex strategies, Day Trading, Short term strategies, Rules of Forex Strategies, Forex training