Three categories of forex trading strategy
In order to understand better, we need to observe our level of knowledge related to best trading strategy for forex. If we are new in this field, it is better if we study first the basic category before moving further to simple and advance ones. First, you need to get familiar with candlestick patterns and moving averages. Later, you should also study the candlestick chart. This will help you to be motivated, since this is the type of chart that mostly used. Munhisa Homma was the very first person who developed this chart. He was Japanese rice trader who lived in 18th century. He found out that more useful information in trading can be got by drawing the “candlestick” or the price movements.
But how a candle is formed and what are its characteristics?
A bar displays open price during specific time frame. It also shows the high and low price of a session as well as closing price from the time interval. Close price is on the right, while the open price is on the left. When the close price is in higher place, it means the close price is higher than the open price. If we draw a horizontal line to the left of the close price and a horizontal line to right of the open price, and then color the space with green, we have ascending candlestick. There are more explanation about the candlestick you can read and study including the use of it for day to day trading. You need to study about it in technical analysis as well as at the key levels besides best trading strategy for forex.