Forex Trading for Beginners-Advanced Profitable Strategies for 2022

The Forex market is filled with hundreds of different trading strategies, but what are the best Forex trading strategies for beginners? This is a common question among traders just starting out and for good reason.

It is often said that a novice trader is closer to being consistently profitable than a trader who has been trading unsuccessfully for years. This is because novice traders do not have time to make bad habits. Traders who have struggled for years must not only find what works best for them, but they must also break bad habits and put aside any negative feelings they may have built up over the years.

But it doesn't matter whether you are a novice trader or you have been trading for years, there are some price action trading strategies that you should always keep in your back pocket. I welcome you to read and learn the three trading strategies that have become staples in my trading plans.

Pin Bar Trading Strategy

When it comes to Forex trading for beginners, pin bars are king. This is because it is a very clear pattern, so it is easy to identify on a chart. It is also one of the easier strategies to trade.

Notice how the market became resistance during the rally but was soon able to break through that resistance. One of the basic principles of technical analysis is that previous resistance becomes new support. Sure enough, the market found support at the previous resistance and formed a bullish pin bar in the process.

Let's take a look at the bullish pin bar forming on the GBPCAD daily chart.

In the chart above, GBPCAD is meeting resistance after an extended advance. After the market broke through the resistance, the market found new support and formed two bullish pin bars. Shortly after forming this pin bar, the market resumed rallying for an additional 370 pips.

For more information on this particular strategy, see the lesson on Forex pin bar trading strategies.

Trading Strategy Inside the Bar

Another very effective Forex trading strategy for beginners is the inside bar strategy. Unlike the pin bar, the inside bar is best traded as a continuation pattern. This means we want to use pending orders to trade breakouts in the direction of the main trend.

Below is an illustration of the inside bar during a rally.

Notice how the blade that precedes the inner blade is much larger. This stem is called the "master trunk" because it completely covers the inner stem. The real magic for this strategy comes after a period of consolidation, represented by the inner bar, on the break of the range of the parent bar.

Below are the inside bars that formed on the USDJPY daily chart during the strong rally.

Notice how USDJPY got out of a very strong rally when it formed the inside bar in the chart above. This is the best inner bar to trade as it indicates a period of true consolidation that often leads to a continuation of the main trend, which in this case is up.

For more on this strategy, see our lesson on the deep bar trading strategy.

Forex Breakout Strategy

Forex trading for beginners is not easy. But with the help of the breakout strategies below, you will be making a profit in no time!

This strategy is different from most conventional breakout strategies out there. Instead of just trading an actual break of the level, we wait for the pullback and retest before entering.

Another difference here is that we are only interested in the breakout that occurs from the wedge pattern rather than the horizontal level.

Here is an illustration of a Forex breakout strategy.

Notice how the market has worked itself into a terminal wedge, meaning that the pattern must eventually end. An opportunity to trade this pattern occurs when the market breaks to one side and then retests that level as a new support or resistance. In the case of the illustration above, an entry would come on a support-turned-resistance retest.

Let's look at the same breakout strategy but this time we will apply it to the USDJPY 4 hour chart.

Notice how on the USDJPY 4-hour chart above, the market touched the upper and lower boundaries of the wedge several times before finally breaking lower. As soon as the 4-hour bar closes below support, we can look for entries on a retest of the previous support, which came just hours later.

Although the pin bar trading strategy is my favorite, I have a few trades Only biggest I use Forex breakout strategy above. The market will often react quite aggressively after a breakout occurs, allowing traders to secure large profits in a relatively short period of time.

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