Short-term Forex trading strategies must include some type of technical component. This simple strategy uses moving averages as entry and exit points whether they are for a short or a long position. You can also use this strategy to catch big market moves. Although this is a strictly technical strategy you can combine it with fundamental analysis to greatly increase your rate of success.
Time Frame: Use a 30 minute or hourly chart to increase effectiveness. You can, however, change the time frame to one the fits your trading style and this strategy should still work.
Indicators setup on close: 9 SMA and 100 SMA
To Enter a Trade: When the 9 SMA indicator line crosses over the 100 SMA enter LONG. Conversely, when the 9 SMA indicator line crosses under the 100 SMA go SHORT.
To Exit: Close your trade or you can also reverse your position when the 9 SMA and the 100 SMA cross back.
Although extremely basic, this trading strategy have been effective for a long time. As you can see, trading does not need to be complicated to be highly effective.
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