Top 10 Forex Strategies for Profitable Trading in 2021

VWAP stands for the volume-weighted average price - its an indicator that we deem to be superior to many other charting tools because it takes into account both the trading volume and the price of a currency. It is calculated by multiplying the sum of price by trading volume and then dividing that number by total volume.To get more news about Top 10 Forex Strategy, you can visit wikifx.com official website.
　　The inclusion of volume in calculations is the trait that makes VWAP a very powerful indicator - and in our opinion, often underused - alternative to the 9-day and 25-day moving averages since VWAP is considerably slower, thus providing far less false Forex trading signals. The indicator‘s other significant feature is that it’s often used as a guiding landmark for big market players like institutions and pension funds, whereas retail traders often disregard VWAP when devising the intraday Forex trading strategy while focusing on popular indicators that often lead them astray.
The rule of thumb for using VWAP is rather simple: a trader must give preference to long trades when the price action occurs above the indicator and consider taking short trades when the price dives below the line. But remember that it should be included in the currency trading strategy only for a single day of trading as it reboots every day prior to the market open, so avoid building the mid-term, and especially long-term trading strategies on Forex, on the basis of VWAP showings.
　　However, VWAP works best when used in combination with the actual volume indicator, the 9-period moving average, and a momentum oscillator like MACD since they provide sufficient confirmation for entering a trade. The EUR/USD chart above provides an example of how the Forex strategy that incorporates VWAP can be applied. Here we see the price dropping below 9MA and VWAP, signifying a strong selling pressure, which is confirmed by the bearish MACD and the mounting bearish volume. According to this trading strategy, you should make the first sell at 1.2175 and keep on selling if 9MA dives below VWAP, a move that is called the VWAP cross.
Support/Resistance and two Stochastics - a powerful combo for successful Forex trading
　　Trading Forex using support and resistance (S/R) zones is probably the oldest play in the book. Nevertheless, they remain one of the most efficient tools for building profitable Forex strategies around. We are ce draw these lines rather frivolously, which ultimately leads to losing trades. rtain that theres no need to teach you the basics of finding and plotting the lines of support and resistance, but we will give you some tips since many traders - even some seasoned ones - tend to
　　Always consider the trading volume when plotting S/R lines. The price action zones on the charts that saw the largest volume spikes should always be taken into consideration as they indicate the areas of increased supply or demand;
　　Remember that the horizontal support is considered more reliable than the diagonal one, especially when it comes to determining the pivot points.
　　When determining S/R for your trading strategy, remember to start from the macro time frames (monthly, weekly) and gradually move down to the lower ones.
For this Forex trading strategy, we will employ horizontal support and resistance, combined with two Stochastics: the fast one, set at 9-3-3, and the slower version of the same indicator with the settings of 21-9-9. The idea behind this strategy is the following: determine a strong S/R level by analyzing the trading volume and then use the showings of Stochastics to determine the immediate and mid-term momentum and plan the trades accordingly. In this example, the fast Stochastic is bullish while the slow one is obviously bearish, so we might be looking at a spike to 1.369, followed by the pullback to 1.313. For this currency trading strategy, its immensely important to understand where the momentum is taking the price when it approaches the area of intense price interaction, as it hints at whether the S/R line would be able to hold.
Employing Parabolic SAR and MACD to maximize the profits
　　The Forex strategy that utilizes the Parabolic SAR and MACD is fairly simple and applicable to all timeframes higher than 15M, and to many currency markets. Besides, these two indicators are available on all Forex trading platforms for free, thus making it even more useful. It comes to show that your strategy doesnt have to be overly complicated in order to be profitable. Oversaturating your strategy with complex trading tolls would oftentimes result in total discordance. At the same time, throwing SAR and MACD on top of candlesticks would keep the chart clean while providing enough signals for successful trading on Forex.