The 4HR GBPUSD Forex Trading Strategy is a trend trading forex strategy that has the potential to average more than pips a month in profit if there is a good trending market in the GBPUSD currency pair.

The 4hr GBPUSD strategy is a multi-timeframe trading strategy so you require the 4hr chart as well as the daily chart.

Before you buy or sell, you need a good filter to filter out potential bad trade setups with this forex strategy. Your filter is the stochastic indicator. The reason for doing this pre-trade check on the daily timeframe is to simply to identify the main trend first because the daily trend has a lot more weight than the trend in the 4hr timeframe.

The midnight trading pattern needs to be based on the size of the candlestick of the new trading day and the size of the previous candlestick.

If it is larger than 90 points, you could set a buy stop-order 5 points at the top of the previous day candle and a stop-loss 3 points under the daily low. Another approach is to place a pending sell stop-order 5 points under the low of the candlestick and a stop-loss 3 points above the daily high. If you are game to dedicating your midnight hour to forex trading, this strategy could work for you. It is normal for currency pairs to oscillate within a relatively tight range for extended periods.

As a trader, if you are well aware of the well-defined trading ranges, you could take advantage of the moves above a resistance level or the moves below a support level on increasing volume.

In this strategy, you enter a trade when the price moves from a period of low volatility to a period of high volatility. To make this strategy work, you need to be both quick and aggressive and trade in higher volumes. You also need to stick with your plan and know when to get in and get out.

This is where the tried and tested risk management technique like stop-loss becomes handy. To maximise your profit, day trade the currency pair between and and and GMT; this is normally when the biggest moves happen.

Read Also: Best Time To Trade Forex In The UK. If you are new to forex trading, opening a demo forex trading account is an ideal way to get started with trading in the global currency market. As the year progressed, the daily volatility decreased, as in May and June the pair showed daily moves of under pips. The lowest daily volatility about 85 pips was registered in late August.

Within a trading day the highest volatility was registered between and GMT pips per hour. The pair continued to be more active until GMT, when a drop to under 15 pips per hour was observed. The lowest volatility during the trading day was recorded between and GMT and between and GMT under 10 pips per hour.

Within a trading week the pair tended to show the highest volatility on Wednesday about pips and the lowest volatility on Monday about 80 pips. Carry trades are one of the most popular trading strategies used in the Forex market. When performing a carry trade, a trader typically sells a currency with a relatively low interest rate, while purchasing a higher-yielding one. The objective is to profit from the difference in interest rates, which can be substantial, especially when taking into account leverage.

Bank of England has maintained its benchmark interest rate repo rate at the current record low level of 0. There have been several indications that the first rate hike may occur in the spring of The Fed has committed to begin raising borrowing costs also in , having already concluded its Quantitative Easing program.

In the future such opportunities will depend on the pace, by which each of the two financial institutions raises borrowing costs and, of course, on the timing. Let us provide an example. Highest trading volumes and volatility can be expected during the European and the US trading sessions, and more particularly when key economic indicators are released.

Trading the major economic releases and other events without the help of technical analysis is basically done using three general strategies — using a proactive, a reactive or a mixed approach. Logically, a mixed approach combines the previous two.

A breakout from a narrow range is referred to price movement from a period of low volatility to a period of high volatility. Forex traders constantly look for such tight ranges, because they indicate that a huge move may be on the horizon.

They would trade the possible breakout in the direction of the underlying trend. In this case the trader would not take into account any bearish signals. In this case the trader would not take into account any bullish signals. In case the daily trend is actually a trading range, a trader would expect breakouts from either side. The narrow range breakout setup usually involves either a doji bar or a spinning top bar, as they have small bodies, reflecting the tight price range.

A breakout above the upper wick of these bars signifies a signal to buy, while a breakout below the lower wick of these bars signifies a signal to sell. Its high was at 1. The next bar, on November 15th, had a wide price range, which breached above the high of the spinning top bar. The trader will set a profit target just below the new zone of resistance, or in the area around 1. The profit target will be set as with the previous case. On the chart we can see the high and the low of the range bar, marked with green and red dotted lines.

If the move on the next day is above the high, then it is a bullish one.

Forex trading is one of the most popular trading markets in the world in terms of turnover, liquidity, and volatility. Both beginners and veteran investors find forex trading an attractive opportunity for a number of reasons. Traders can use tools to analyse markets and trade from home and only a small capital is needed to start trading. Whatever currency you deal in, it is important to understand them well before you take any big steps. Here are some strategies for those who wish to trade the British Pound GBP.

In the world of forex trading, the GBP or the British Pound Sterling is one of the busiest. After the Bretton Woods system that was prevalent in the post World War II world economy to ensure exchange rate stability got dismantled in , nations adopted a floating exchange rate model.

This makes the GBP a currency that forex traders should actively follow and master to be successful. The high levels of volume, volatility and spread quotation are due to wider price ranges compared to other currency pairs. So what are the top strategies for the GBP traders? If you have a forex trade account, irrespective of whether you are a new or an experienced GBP trader, use these three simple strategies to gain from the trading volumes and volatility.

Carry trading happens when you buy a high-interest currency against a low-interest currency to make a profit from the difference in interest rates. And in addition to your trading gains, you can also make profits from their interest differences. As the name suggests, this trading takes place at midnight and you enter the market at hours as per the time set on your trading account platform.

The midnight trading pattern needs to be based on the size of the candlestick of the new trading day and the size of the previous candlestick. If it is larger than 90 points, you could set a buy stop-order 5 points at the top of the previous day candle and a stop-loss 3 points under the daily low. Another approach is to place a pending sell stop-order 5 points under the low of the candlestick and a stop-loss 3 points above the daily high. If you are game to dedicating your midnight hour to forex trading, this strategy could work for you.

It is normal for currency pairs to oscillate within a relatively tight range for extended periods. As a trader, if you are well aware of the well-defined trading ranges, you could take advantage of the moves above a resistance level or the moves below a support level on increasing volume. In this strategy, you enter a trade when the price moves from a period of low volatility to a period of high volatility. To make this strategy work, you need to be both quick and aggressive and trade in higher volumes.

You also need to stick with your plan and know when to get in and get out. This is where the tried and tested risk management technique like stop-loss becomes handy. To maximise your profit, day trade the currency pair between and and and GMT; this is normally when the biggest moves happen. Read Also: Best Time To Trade Forex In The UK. If you are new to forex trading, opening a demo forex trading account is an ideal way to get started with trading in the global currency market.

Forex trading platforms come with a range of powerful tools such as real-time market insights, charts, useful data, market indicators and other resources to meet your unique trading needs. Enhance your forex trading performance by first practising on your demo account. Using the strategies covered in this article will help you as a GBP trader to make informed decisions and carry home great returns without many risks. Top 10 Forex Pairs To Trade. How to Start Day Trading in the UK.

Trade Forex Now. By Trading Education Team. Last Updated July 23rd GBP Trading In the world of forex trading, the GBP or the British Pound Sterling is one of the busiest. The Different Strategies For GBP Traders So what are the top strategies for the GBP traders?

Read Also: Best Time To Trade Forex In The UK Open A Demo Forex Trading Account If you are new to forex trading, opening a demo forex trading account is an ideal way to get started with trading in the global currency market. Online Trading. Forex trading.

The objective is to profit from the difference in interest rates, which can be substantial, especially when taking into account leverage. This makes the GBP a currency that forex traders should actively follow and master to be successful. Logically, a mixed approach combines the previous two. For each pair in the table we used the low price on May 8th and the closing price on December 31st. The Ultimate Forex Dynamic System.

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