Forex strategies/Technical
Trading strategy for Forex is basically a defined set of rules for trading. Strategy largely affects the
long-term success in Forex trading. Trading without strategy is able to give only the short-term profit
and soon can be followed by a collapse. That is why Tickmill offers its customers to learn and
choose among the most successful Forex trading strategies the one that fits your trading style the
most.
Support and resistance
Trader defines a flat market with clear support and resistance levels. Trading is within the range until
price breakout. Stop loss is put outside the channel.
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Timeframes: All, preferably from 1H.
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Type: no trend (flat)
Breakouts
When price trades in a range for some time, sooner or later we’ll see a breakout either up or down.
Usually the breakout is very fast and volatile, so it is possible to open a trade in the same direction.
Stop order is usually above the support line or below the resistance but not too close to avoid
common movements and flat widening. To be sure, it is always wise to wait until at least one price
bar closes below/above the flat-range line.
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Timeframes: All, preferably from 1H.
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Type: no trend (flat)
Moving average
Perhaps one of the most popular strategies. Please note that trader will get much more signals trading
on smaller time frames which puts more emotional pressure. Any instrument can be chosen and any
period can be set for the moving average. Back-testing on history (at least 1 year period) is required
to define if chosen parameters are correct. Stop loss is usually set above/below the moving average
but not too close.

Timeframes: All, preferably from 1H.

Type: directional (flat)
Oscillators
Oscillators measure strenght/weakness of a selected instrument. Oscillators work well during flat
markets when there are no trends. Trader can choose an instrument and indicator’s parametres
according to personal needs and back-testing results. Oscillators point out good entry points
whenever market is oversold or –bought. It is wise to use a fixed stop loss when working with
oscillators to avoid bigger losses if a breakout should happen.
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Timeframes: All, preferably from 4H.

Type: no trend (flat)
Japanese candlesticks
History tends to repeat so are the visual formations on the charts as well as price-bar combinations.
Listing all the possible combinations is not a purpose of this topic, we just give an idea where one
could start. There are many visual formations that can be used: „triangles“, „flags“, „head and
shoulders“ etc as well as countless price-bar combinations consisting of one or several candles.
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Timeframes: All, preferably from 1H.

Type:both directional and flat
The importance of Forex trading strategy
Specific trading strategy should be used exactly for a chosen currency pair, for which it is created
because it depends on the ratio of the certain currency pair. However, this does not mean that the
other currency pair won’t benefit from the chosen strategy, but make sure you analyse the strategy
more before applying it on different currency pairs.
The main task of any Forex trading strategy is to minimize the impact of external factors on the
Forex trader and to organize trader’s activities. The development of a trading strategy can even be
compared with the development of a business plan for a specific project.
When developing your own trading strategy or improving the old one, it is important to remember
these rules:

Any trading strategy has a share of subjectivity, it does not guarantee a success and can work also
against you;

Each Forex trading strategy should be compatible with a trader’s style;

95% of trading failures are caused by lack of the psychological stability – Forex trading strategy is
designed to solve this problem.
We hope it helped you to understand a little bit more about trading and gather some ideas for
developing your own strategy which suits you. Traders can combine different methods or develop
even their own indicators and trading robots, because there is no limit in different variations.