The Forex market is filled with hundreds ofdifferent trading strategies, but what are the bestThis is a common question among traders just starting out and for good reason.

Its often said that a beginning trader is closer to becoming consistent profitable than a trader who has been trading unsuccessfully for years. This is because a beginning trader hasnt had time to create any bad habits. The trader who has been struggling for years has to not only find what works best for them, but they also have to break any bad habits and put aside negative feelings they may have built up over the years.

But no matter if youre a beginning trader or youve been trading for years, there are a fewprice action trading strategiesthat you should always keep in your back pocket.I welcome you to read on and learn three trading strategies that have become staplesin mytrading plan.

When it comes to Forex trading for beginners, the pin bar is king. This is because itsa very obvious pattern, making it easy to identify on a chart. Its also one of the easier strategiesto trade.

Notice how the market came into resistance during a rally but was soonable to break through that resistance. One of the basic principles of technical analysis is that former resistance becomes new support. Sure enough the market found support at former resistance and formed a bullish pin bar in the process.

Lets take a look at a bullish pin bar that formed on the GBPCAD daily chart.

In the chart above, GBPCAD met resistance after an extended move up. Once the market broke through resistance, it found new support and formedtwo bullish pin bars. Shortly after forming these pin bars, the market continued its rally for an additional 370 pips.

For more information on this particular strategy, see the lesson on theForex pin bar trading strategy.

Another highly-effective Forex trading strategy for beginners is the inside bar strategy. Unlike the pin bar, the inside bar is best traded as a continuation pattern.This means we want to use a pending order to trade a breakout in the direction of the major trend.

Below is an illustration of an inside bar during a rally.

Notice how the bar preceding the inside bar is much larger in size. This bar is called the mother bar because it completely engulfs the inside bar. The real magic to this strategy comes after the consolidation period, which is represented by the inside bar, on a break of the mother bars range.

Below is an inside bar that formed on the USDJPY daily chart during a strong rally.

Notice how USDJPY was coming off of a very strong rally when it formed the inside bar on the chart above. These are the best inside bars to trade because it shows a true consolidation period which often leads to a continuation of the major trend, which in this case is up.

For more on this strategy, see the lesson on theinside bar trading strategy.

Forex trading for beginners isnt easy. But with the help of the breakout strategy below, youll be profiting in no time!

This strategy is different than most of the conventional breakout strategies out there. Instead of simply trading the actual break of a level, were waiting for a pullback and retest before entering.

Another difference here is that were only interested in breakouts that occur from a wedge pattern rather than a horizontal level.

Here is an illustration of the Forex breakout strategy.

Notice how the market has worked itself into a terminal wedge, which simply means thatthe pattern must eventually come to an end. The opportunity to trade this pattern occurs when the market breaks to either side and then retests the level as new support or resistance. In the case of the illustration above, the entry would have come on a retest of support-turned-resistance.

Lets take a look atthe same breakout strategy but this time well apply itto a USDJPY 4 hour chart.

Notice how in the USDJPY 4 hour chart above, the market touched the upper and lower boundaries of the wedge several times before eventually breaking lower. As soon as the 4 hour bar closed below support, we could have looked for an entry on a retest of former support, which came just a few hours later.

Although the pin bar trading strategy is my favorite, I have had some of my largest trades using the Forex breakout strategy above. The market will often react quite aggressively after the breakout occurs, allowing traders to secure a large profit in a relatively short period of time.

So there you have it. Three simple Forex trading strategies for beginners. These strategies are by far my favorite and for good reason. If used properly, they canquickly build your trading account into a sizeable amount. The best part is, they are extremely simple to understand and are therefore easy to incorporate into your trading plan.

The pin bar trading strategy is best traded as a reversal pattern in the direction of the major trend

The inside bar trading strategy is best traded as a continuation pattern

The Forex breakout strategy should be traded after a break and retest of either support or resistance

All you really need to become profitable trading Forex is two or three great trading strategies

When youre just starting out as a trader, its essential to keep things simple. Focus on one or two strategies at a time. That way, you can use the rest of your time and energy working on your patience and discipline.

The pin bar and inside bar are two of my favorite strategies for the beginner. The breakout strategy is another excellent choice.

Take it slow and dont think about making money. Work on developing a sound process and stay patient. Do that and the money will follow.

One to two messages daily. Unsubscribe any time. See ourprivacy policy.

Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. Hes been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more…

Disclaimer: Any Advice or information on this website is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Daily Price Action, its employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Dont trade with money you cant afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfds, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.