A Simple Forex Trading Strategy

Crude oil can offer a simple, reliable forex trading strategy through the inversely correlated USDCAD currency pair. This pair trades so that it trends to move in the opposite direction that crude oil moves. And because crude oil is a relatively fundamentally stable commodity, it offers many great trends. More specifically, crude oil tends to set either linear directional trends, or range-bound sideways trading. In both cases, traders can trade USDCAD with a lot of confidence which is not found in any other pair. Foreign exchange currency trading online for beginners can be based exclusively on USDCAD and crude oil. While wise CFD traders can also temporarily hedge uncertain trades on USDCAD through trades on crude oil. There is no need to diversify into other commodity currencies either, as this will overwhelm the new trader. But one commodity such as crude oil, is quite unique, and offers all the profit potential one will ever need. Traders can make serious money trading USDCAD alone, and doing so on more than one time frames. They can practice currency trading in various ways, all focused on USDCAD. And the deeper they are able to dig in this specific currency pair, the more the will be able to handle risk and market uncertainty. A forex trading strategy doesn’t have to include many currency pairs. But it can include one commodity and one related currency pair alone.

The USDCAD Forex Trading Strategy

The SUDCAD forex trading strategy is nice for various reasons. The most important is the solid trend that crude oil provides from time to time. Since the entire crude oil industry is behind these trends. And this is in huge contrast with other currencies that are very country-specific, and therefore inherently less stable. And being less stable means that fundamental factors can create sudden movements in a currency pair. Movements that will easily defy all technical analysis. A good forex trading business opportunity for many beginner level traders can be perfectly based on USDCAD. But apart from crude oil itself, traders can enhance such strategies further by looking deeper into the US dollar. The US dollar cannot change the solid trends of crude oil. But it can nonetheless have day to day impacts on crude oil price, and also on USDCAD. Traders can use these intraday extreme price swings to make day trades. It also helps to know that one day’s extreme price action cannot possibly change the daily trend. And a lot of research has to be focused on the daily charts of these markets. Intraday movements are mostly caused by news, and only last for few hours to a single day. Counter-trend movements lasting for several days are corrections of the major daily trend itself, and are natural and expected to happen. But even these can be predicted to quite an extend.