A comprehensive forex strategy should cover the basic concepts behind the forex currency market as well as teach you a method that is effective, efficient, and flexible at the same time. Many forex strategies floating around on the internet these days do a decent job of giving you background on the currency market, but fail miserably when it comes to providing you with a method that is effective and flexible at the same time. The reason for this is that the vast majority of forex trading systems or strategies that are for sale consist of rigid rule-based methods that require the trader act like a robot.
Trading in such a robot-like manner is ultimately going to result in you taking many trades that are whip-saw setups due to the lack of flexibility and discretion involved in these rigid rule based systems. What is required for continued and long-lasting success in the forex market is a forex strategy that is inherently flexible by its very nature but also that has been proven to be effective over time. Such a forex strategy will inevitably be very simple in design and will likely involve minimal to no lagging indicators. One forex strategy that fits this bill quite nicely is that of price action analysis.
Forex market conditions are constantly changing, from day to day government policy changes, to daily economic reports, there are many fundamental variables which can act to catalyze the forex market and change its direction. Often these directional changes can be severe and volatile within a short period of time. The beauty of a forex strategy that provides natural flexibility is that it allows you to trade such volatile market conditions with a high degree of accuracy as well as market conditions that are not as volatile. Most forex strategies you come across are primed or “optimized” for a specific market condition, and traders get themselves into trouble with such methods by not properly recognizing which state the market is in at any given time. For example, they may misinterpret the market as trending when it is really moving sideways, or vice versa.
When trading a forex strategy like price action you do not need to worry about only trading during strict market conditions because when you can read a “naked” price chart, you can learn to profit in all market conditions. This is exactly the sort of inherent flexibility that sets plain vanilla price chart analysis apart from the masses of other non-effective forex strategies. The truth of the matter is that many traders either don’t want to hear or believe that human discretion and discipline are what set consistently profitable forex traders apart from the herd of losers. You simply cannot profit consistently without a certain degree of discretionary price action interpretation. Any professional trader will attest to the fact that “gut” trading feel takes time to develop and is a function of screen time and studying price dynamics. An effective yet flexible forex trading strategy that has been used for hundreds of years by profitable traders like price action analysis is the best way to develop this “gut” trading feel and your own perspective on price dynamics.