Each currency pair has a sustainable strategy. The following strategies are suitable for SGDCHF trade:
1. Bollinger band
This is a strategy that you can employ to see the possible support and resistance rate in the market. The Bollinger band strategy is characterised by three brands namely: lower line, central line, and upper line. The central line which is also referred to as the simple moving average (SMA) lies on a 20 days period. The lower and upper lines show the market volatility.
When the volatility rate in the market is high the bands will expand. When the market is relatively stable the bands are close to each other. Similarly, when the value gets to the external bands of Bollinger, it stimulates the market to bounce back to the centre.
2. Momentum indicator
This strategy uses the latest ending price and measures it to the preceding closing price. The momentum indicator strategy will then display a single line which is often on a different chart under the major price chart.
This strategy will show you how the speed of price movement through an indicator either above or below 100. For example when it shows you 102 it implies that the price is moving in speed than 101 indicators. While 98 reading implies that the price has a stronger downtrend than 99 reading.
This is another great strategy to trade SGDCHF. Fibonacci helps identify support and resistance areas by reading the horizontal lines on the chart.
Fibonacci retracements appear in six lines on the chart with the three indicator. The highest position (100%), average position (50%) and lowest position (0%). The other three lines are: 61.8%, 38.2% and 23.6% indicating the sequence of support and resistance.
This strategy is very important when trading the SGDCHF. You can use it to measure the recent price of a currency in relation to the level of the Bladerunner indicator. You will be able to determine your best entry and exit point in the forex market thereby minimising risk.
This strategy helps you to understand the price action by indicating support and resistance points. To use this strategy successfully you have to ensure that the market is trending.
5. Moving average crossovers
Moving average crossovers is a strategy that you can use to trade the SGDCHF by understanding the meeting point of two indicators. Using this strategy will broaden your understanding on when the price crosses beyond or under the moving average line.
Two moving indicators are used for this strategy: slow EMA and fast EMA which shows the level of opportunities when the two lines cross.
6. Moving Average Convergence Divergence (MACD)
Why it is important to use the MACD strategy is to determine the end of a market and explore new opportunities. You can easily trace the MACD under the main price chart consisting of the MACD line, histogram, and the signal line.
If you want to understand the difference between two indicators then the MACD is what you need. The two indicators or moving averages show you the signals of buy and sell in the forex market. This will help you to determine the limit of your orders as well.
Buy signal displays when the MACD line crosses beyond the signal line. The sell signal is shown when the signal line crosses beyond the MACD line. The MACD line is blue while the signal line is red from the above chart.
7. Keltner Channel
You need Keltner Channel strategy for volatility indications. This strategy helps you to know when the SGDCHF strayed from the moving average for a long time. You can also use this indicator to know when the SGDCHF is overbought or oversold.
8. Fractals indicator
Fractals indicator is another strategy you need while trading the SGDCHF currency pair. The fractal indicator strategy gives you an insight on the direction of a pair. It achieve this by showing you a reoccurring model amidst the movements of larger price. It also shows you several market indicators pointing to support and resistance.
9. Relative Strength Index (RSI)
RSI should be your technical analysis tool when trading the SGCHF pair. This strategy gives you an insight about the momentum of the market as well as the overbought and oversold conditions. On the RSI chart you will see a single line and two automatic levels that indicate the momentum of the market conditions.
On the vertical axis of the RSI you are going to see the recent price against the former price which ranges from 0 to 100. A tremendously strong upward trend is depicted as 100 and trends above 70 are graded overbought. A consistent strong downtrend is depicted as 0 and anything less than 30 is rated oversold.
10. Breakout trading
Breakout trading strategy guides you on how to take quick action in the market within a given timeframe. This is because when a price breaks out from an exchange rate a breakout can take place. When you wait for a price to break you can go into the market pending on when the volatility is low.
The success of using this strategy lies on how you are able to identify the volume of trades in the market which can be difficult. But you can achieve that by incorporating the risk management strategy.