Strategies for Forex trading in India

There exist a variety of strategies using which you can gain the best results from the Forex market and to identify entry and exit points. Having the right timing is vital to ensure that the success in the forex trading is achieved. 

Some of these strategies for effective Forex trading in India include the following – 

• Fundamental analysis – 

In this case, traders can understand the fundamental indicators of Forex trading in India. This is important to understand if the currency pair is overvalued or undervalued.

This is overly complex that uses multiple elements of the economic activities to get an understanding of the present and future trade data and investment trends. 

• Technical analysis

This is another important strategy for Forex trading in India. This is one of the highly favored strategies among traders. Here both past and present trends in currency exchange are taken into consideration for getting the best results. 

The core idea behind the same is that market movements are determined by factors like demand, supply, market psychology, etc. This helps you to establish limits and range for the currency pairs.

• Trend trading

Trend trading is an important and most preferred strategy for Forex trading in India. Here, the upward or downward trends are understood in a currency pair. This helps to choose trade entry and exit points to understand the relative strength of the same.

• Range trading

Range trading is another simple and effective Strategy for Forex trading in India. This helps to hold the same within a predictable range at a given period. This is evident in the market itself and in a country that has a stable currency involving a stable economy.

Here, the traders use immediate buying and selling strategy at both high and low values. These trends may even include predictable results that may stretch out to a large period. 

• Momentum trading 

Momentum trading uses the notion that strong price movements in a direction will boost trade in the same direction. Here the weakening movement indicates that the trend is lost and the same is headed for a reversal. 

• Swing trading 

Using the above approach, a medium-term trading strategy is used. The period may extend to a day or a week. These swing traders may need to set up transfers based on swing movements. 

• Breakout trading

This strategy helps the traders to identify a trade entry point at a breakout from a previous trading range.