In the world of forex trading, when you are going to make a transaction you cannot open a position carelessly. Everything requires careful thought, starting from looking at the news, the direction of the trend movement, to using additional indicators or tools. Of course, this forex trading technique is done to ensure success and reap as much profit as possible.

However, there is actually the best forex trading technique that can be done more simply, even seems easy for beginners. If you want to gain success in trading activities, try to understand the following best forex trading techniques.

WhaM Technique

WhaM can be said to be one of the best forex trading techniques for beginners. The reason is, this technique is very easy to do because it does not require complicated knowledge or additional tools. Instead, you only rely on line charts. Although considered simple, this WhaM technique is actually quite effective, so it continues to be a mainstay for professional traders.

Less is more, that is the statement that perfectly describes this technique. If you usually use candlestick charts to see market movements, now try switching to line charts. Note whether there are "W" and "M" shapes formed on the line chart.

These two letter shapes can only be seen from the line chart, while the candlestick chart is less able to show these shapes clearly. To make a Buy Entry, first, try to find the letter "W" shape on the chart with both legs penetrating the resistance line. Make a Pending Order Buy Limit at the nose point of the letter "W".

Then, change the line chart to a candlestick chart to be able to set Stop Loss at the low point of the letter “W.” The way to do this is by finding the lowest Lower Shadow of the letter “W.” You can determine Take Profit with a Risk:Reward ratio of 1:1 or more, depending on your trading style.

Meanwhile, for Entry Sell activity, first look for the letter "M" pattern in the line chart, where both legs have reached the Support break. Set a Pending Order Sell Limit at the nose point of the letter "M". Then, change it back to a candlestick chart to see the highest price of the letter "M" pattern. Set Stop Loss at the highest price point. Just like Entry Buy activity, Take Profit can be done with a Risk: Reward ratio of 1: 1 or more, measured from the Stop Loss distance.

The time to do this best forex trading technique is on the H4 time frame. However, this is not an obligation, basically you can do this trading technique whenever you want. However, it is recommended not to do it below the H4 time frame so that the Win Rate obtained is even greater.

Trading at 7 AM

This best forex trading technique is quite popular among Indonesian traders. One of the reasons is because it fits into the daily routine schedule. For traders who have jobs or are still studying, trading can be done right before starting daily activities.

One of the keys to successful trading with consistent profits is the right trading time. 7 am this morning falls on the closing of the candle, precisely the H1 time frame. The EUR/USD currency pair is the right choice for you to use in this time frame, especially considering that this currency pair is so popular because of its great profit opportunities.

In this technique, choose a currency pair with large fluctuations every day, other examples such as GBP/USD and GBP/JPY. Use the candlestick chart to see the movement level. If the candle after 7 am is above the highest level of the candle at 7 am (Breakout High), then it can be estimated that the price will rise, making it the right time to take a Buy position.

Likewise, if the candle after 7 am is lower than the highest level of the candle at 7 am (Breakout Low), then this is the right time for you to take a Sell position because the price is expected to fall. After that, you need to set a profit target.

Of course, the target can vary, depending on the currency pair you choose. For the EUR/USD currency pair, set a target of around 15-40 points if the Breakout High or Breakout Low occurs in the Asian continent market. Set a target in the range of 30-80 points if trading is done in the European or American markets.

Riding Trend

Another best forex trading technique for beginners is riding trend. This technique does not require any special strategy or calculation, here the market movement trend is your friend. It does require strong intuition, but actually the riding trend technique is quite easy to do as long as you understand the tips and trading components.

The first thing you have to do is determine how long you want to hold the position. This duration greatly influences the determination of the time frame. According to their respective sizes, this time frame is an indication of the nature of the trend. For example, a large time frame indicates a long-term trend. Likewise, small and medium-sized time frames indicate short and medium terms, respectively.

After that, make sure the market sentiment at that time is the same as the trend formed on the chart. Then, use the trendline to be able to identify the price trend. In forming a trend, there are 4 important stages that you must understand, starting from the nascent condition (just formed), fully charged (moving fast), aging (moving slowly), and end (finished).

By understanding these four stages, you can avoid false trends that can actually harm you. Next, pay attention to the validity of the trendline by seeing how many prices test the trendline. The more prices mean that this trendline is valid enough to be used as a benchmark.

The next stage is to use the ADX or Oscillator indicator to be able to confirm the direction and strength of the trend movement. Make an Entry Order, then set a Stop Loss of at least 20 pips from the trendline.

News Straddling

If riding trend uses trend movement as the main benchmark, the next best forex trading technique is to rely on news about world politics and economics. Of course, as many people know, the political and economic conditions of a country are the main factors in price movements, especially in forex trading activities. Therefore, it is very important for a trader to continue to update on world news, focusing on the currency pairs being traded.

In this best trading technique, you can focus on major currency pairs, for example EUR / USD. Why is that? Major currency pairs have a very large profit opportunity. In addition, it would be very complicated if you had to continue to see news from each country without focusing on one or more currency pairs.

Not to mention that the countries of these major currency pairs are quite highlighted by the media, so it is quite easy to follow the news developments. To use this best trading technique, choose a time frame that is intraday, meaning it only lasts a maximum of 1 full day. Then, also determine the support and resistance of the currency pair.

Place a Pending Order Sell above the resistance line, while a Pending Order Buy is placed if it is below the support line. Set a Stop Loss Pending Buy 20 pips from below the resistance line and a Stop Loss Pending Sell 20 pips from above the support. This is to minimize losses that could occur. Remember to open a position when you have reached your target price level.

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