Strategy Library
Proven forex trading strategies with clear rules, examples, and risk guidance.
Pin Bar Reversal
IntermediateH4 / D1The pin bar (pinocchio bar) is a single-candle reversal pattern featuring a long wick and a small body. It signals rejection of a price level and a likely reversal.
Entry Rules
- →Wait for a pin bar at a key support/resistance level
- →The wick should be at least 2/3 of the total candle length
- →Enter on the close of the pin bar or a limit order at the 50% retracement of the wick
- →Confirm with higher timeframe trend direction
Exit Rules
- →Place stop loss beyond the tip of the wick + a few pips buffer
- →Target the nearest significant support/resistance level
- →Aim for minimum 1:2 risk-reward ratio
Advantages
- Clear entry and stop loss levels
- Works across all timeframes
- Backed by price action logic
Disadvantages
- Many false signals on lower timeframes
- Requires practice to identify quality setups
- Not suitable for ranging markets
Range Breakout
BeginnerH1 / H4 / D1Trade the breakout of a consolidation range. When price breaks above resistance or below support with momentum, it often continues in that direction.
Entry Rules
- →Identify a clear range with at least 3 touches of support and resistance
- →Wait for a candle close outside the range
- →Enter on the retest of the broken level (optional but improves RR)
- →Look for increasing volume on the breakout candle
Exit Rules
- →Stop loss inside the range (below broken resistance or above broken support)
- →Target = range height projected from breakout point
- →Move stop to breakeven after price moves 1R in your favour
Advantages
- Simple to identify
- Can catch large moves
- Works well in trending markets
Disadvantages
- High rate of false breakouts
- Gaps and slippage common at key levels
- Requires patience waiting for valid ranges
Carry Trade
IntermediateD1 / W1Borrow in a low-interest currency (JPY, CHF) and invest in a high-interest currency (AUD, NZD). Profit from the interest rate differential (swap) while holding.
Entry Rules
- →Identify currency pairs with large interest rate differentials (check central bank rates table)
- →Only enter in the direction of the long-term trend
- →Use pullbacks for better entry pricing
- →Ensure global risk appetite is positive (avoid during risk-off periods)
Exit Rules
- →Trail stop using the 20-week moving average
- →Exit immediately if risk sentiment deteriorates sharply (carry trades unwind fast)
- →Review if central bank guidance changes significantly
Advantages
- Earns daily swap income
- Can hold for weeks or months
- Works in stable, low-volatility environments
Disadvantages
- Devastating in risk-off environments
- Vulnerable to sudden central bank policy shifts
- Requires monitoring macro environment
Moving Average Crossover
BeginnerH1 / H4 / D1Use two moving averages (fast and slow). When the fast MA crosses above the slow MA, buy. When it crosses below, sell. A simple trend-following system.
Entry Rules
- →Use 50 EMA (fast) and 200 EMA (slow)
- →Buy when 50 EMA crosses above 200 EMA (golden cross)
- →Sell when 50 EMA crosses below 200 EMA (death cross)
- →Confirm with price trading in the direction of the signal
Exit Rules
- →Exit on the opposite crossover signal
- →Or use a fixed risk-reward target of 1:2 or 1:3
- →Trail stop under/over significant swing highs/lows
Advantages
- Completely rule-based, eliminates emotion
- Easy to automate
- Effective in strong trending markets
Disadvantages
- Produces many false signals in ranging markets
- Lagging indicator — entries often late
- Requires good market selection
London Session Breakout
BeginnerM15 / H1Capture the volatility spike at the London market open (07:00–08:30 UTC). Price often establishes its daily direction in the first 90 minutes of the London session.
Entry Rules
- →Mark the high and low of the Asian session (23:00–07:00 UTC)
- →At 07:00 UTC, set buy stop 5 pips above Asian high
- →Set sell stop 5 pips below Asian low
- →Enter whichever triggers first — cancel the other
- →Only trade Mon–Thu (avoid Friday)
Exit Rules
- →Stop loss = Asian range + 5 pips (the other side)
- →Take profit = 1.5x to 2x the Asian range
- →If no breakout by 09:00 UTC, cancel both orders
Advantages
- Consistent daily setup
- Clear entry/exit levels
- Takes advantage of known liquidity pattern
Disadvantages
- Can whipsaw during high-impact news
- Requires early morning monitoring
- Works better in trending regimes
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