Explain about any strategy used in the forex trade. What are the strategies used by professional traders along with other indicators or filters? Any alert signal is there?
Successful trading is often described as minimizing the risk with respect to the reward, or upside. Any trading strategy should have a disciplined method of limiting risk while making the most out of favorable market moves. eg. the forexplane, where the traders can also maintain a Diary for free in the trading blogs, explains about a Simple Moving Average (“SMA”) technical study. It is based on a 12-period SMA, where each period is of 15 minutes. We encourage any trader to research other strategies as thoroughly as possible. We will use a simple algorithm: when the price of the currency crosses above the 12-period SMA, it will be taken as a signal to buy at the market. When the currency price crosses below the 12-period SMA, it will be a signal to “Stop and Reverse” (“SAR”). In other words, a long position will be liquidated and a short position will be established, both with market orders. Through this system traders will be on alert - he will always have either a long or short position after the first signal.