Naftal Nyakiongora

#DayTradingStrategy
Top 5 forex day trading strategies
1. Trend trading

Trend traders attempt to make money by studying the direction of asset prices, and then buying or selling depending on which direction the trend is taking.
If the trend is upwards, with prices making a succession of higher highs, then traders would take a long position and buy the asset. If the trend is downwards, with prices making a succession of lower lows, then traders would take a short position by selling.

Trend trading isn’t exclusively used by day traders as positions can be kept open for as long as the trend continues. However, if you’re sticking to intra-day trading, you’d close it before the end of the day.
2. Swing trading
Swing trading is all about taking advantage of short-term price patterns, based on the assumption that prices never go in one direction in a trend. Instead, swing traders look to profit from both the up and down movements that occur in a shorter timeframe.
While trend traders often seek to take advantage of long-term market trends, swing traders tend to be more interested in the small reversals in a market’s price movement. They attempt to spot these reversals ahead of time, and trade to make profits from smaller market movements.
3. Scalping
Scalping is a very short-term strategy where traders aim to take small but frequent profits, focusing on achieving a high win rate.
The theory is that you can just as easily build a big trading account by taking smaller profits time and time again, as you can by placing fewer trades and attempting to lock in profits in the long run. Scalping requires a very strict exit strategy as losses can very quickly counteract the profits.
Scalpers often close positions before the end of the day because the smaller profit margins from each trade can quickly be eroded by overnight funding charges.
4. Mean reversion
Mean reversion is based on the theory that prices – and other measures of value such as price-to-earnings (P/E) ratios – eventually move back towards the historical mean.
The strategy uses technical analysis, such as moving averages, to identify assets whose recent performance has differed considerably from their historical average. Mean reversion traders will then take advantage of the return of the price to its average.
5. Money flows
The money flow indicator signals whether an asset might be overbought or oversold using the asset’s trading volume and price. It works by comparing the number of trades from the previous day to the current day, to determine whether the money flow was positive or negative. A reading of 80 or higher generally indicates overbought conditions and is a signal to sell, whereas a reading of 20 or below usually indicates oversold market conditions and is a signal to buy.

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