The Benefits Of The Ala Grace Cheng Forex Trading Strategy. Forex trading techniques or trading strategies are the main weapons for traders to get profits. So don’t be surprised if many traders are still looking for strategies that are suitable for all market conditions. Is trading strategy the main key to success? Hmmm, apparently not, the most important thing in the forex trading game is understanding various kinds of market situations and how to find them, we balance them.
Departing from this, Grace Cheng, a world trader, has 7 forex trading techniques which, according to him, are very effective for profit. Do you want to know what trading techniques are? Those who are already curious about staying here
Who Is Rahmia Cheng?
The name Grace Cheng is no stranger to the world of the forex industry, this woman who graduated from the National University of Singapore has a special interest in the world of trade, Grace began to search for information and knowledge related to forex trading and other finance. Because his theory was not enough for him, he started trying to trade with a demo account, he tried almost all pairs but Grace preferred to trade with EUR / USD & USD / CHF pairs.
Grace Cheng tried to trade forex with a demo account for several months, until finally trading on a real account was stable. According to him, a demo account is the best learning tool, not only for learning, but from a demo account he also knows various forex trading techniques. Grace also tried all the strategies she knew, be it recommendations from friends or even Grace herself knew. After trying all his trading techniques, he felt that day trading was in accordance with his trading style.
After successfully achieving consistent profits in a real account, Grace Cheng poured her success on the blog she created. He writes all trade journals and their experiences on his blog. Through a blog that he created, Grace managed to get a positive response from the community, especially in the United States and Britain. Grace’s expertise in the field of forex trading led to her being asked to contribute to top-tier media such as Investopedia, Smart Investors, Forex Journals, Trader Journals and many more.
Ever read a book called “7 Winning Strategies for Forex Trading? Grace Cheng was the one who made it. This oriental woman was even offered by a British publishing company to make a book. Now, in the book she made, Grace explained 7 strategies to win the battle in forex trading. , this will be discussed in the following article.
Do Not Conflict With Market Sentiments
Never conflict with market flows, because that will make it difficult for you to make trading decisions. This forex trading technique is a series of trades related to exit and entry positions.
Grace Cheng uses basic knowledge so she can know the market’s condition. Famous languages are: bearish, bullish, and floating or uncertain markets. You who want to follow this method must understand various economic indicators. Not only following market sentiment, Grace Cheng advises traders to measure market strength, the way to use it is to monitor the release of data from Trader Commitments and also observe price movements after economic news is released.
Riding trends or popular languages known as following trends are the mainstay of Grace Cheng’s forex trading techniques. Grace revealed that she was greatly helped in this way. He also claimed he had never thought of a way to seize opportunities as early as possible when trends suddenly change. Grace claimed to only follow trends that have become advantages.
The riding strategy is carried out in 6 ways, including:
The first step, make sure you already know how long the position you want to hold. The reason is very related to the selection of the time period used. Grace Cheng believes that there are about 3-time frames that need to be examined, namely the small, medium and large sizes.
The large time frame shows long-term trends, while the small or medium time frame indicates medium and short term trends. The theory of observing trends in a frame 3 times is almost the same as a three-screen trading system.
Your next step should be to ensure that market sentiment is the same as the trend pattern on the chart. To measure sentiment, you can use the previous strategy.
Meanwhile, so you can find out trends, use the trendline. To be able to understand price trends, you should familiarize yourself with the stages of trend formation. Grace Cheng said that there are 4 stages of trend formation, namely: newborn (newly formed), fully charged (fast-moving), aging (slowing down) and ending (complete).
If you successfully identify trends, you can more easily stay away from incorrect entries in the trend phase that are likely to be detrimental.
The next step is to look at the validity of the trend line. You can find out how much the price is testing the trendline. The more times that moment occurs, the trend line will be more valid.
Next, confirm the direction and strength of the trend. At this level, it is recommended to use ADX or OSCILLATOR indicators, for example, Stochastic and MACD.
- Order entries match trends in the short run.
- Set a stop loss of at least 20 pips from the trendline.
This forex trading technique is opposed to trading breakthroughs that seek the potential benefits of price breaks at various important levels. Fading breakouts “dissect” false breakout signals and are more directed at trading techniques on the sideways market. This forex trading technique is suitable for use in quiet market conditions, followed by fluctuating price movements and following the rules of support and resistance limits.
To get into position, Grace Cheng advises traders to make small time frames like H1 and their own stop-loss which is placed around 20 to 30 pips but outside the range of resistance support.