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26 Forex Trading Strategies, Explained Step by Step

ForextityUpdated October 2026

Every strategy in the Forextity scanner in one place: what it is, how it works, and how to trade it.

Forextity's Strategy Scanner turns each method below into a repeatable, rule-based analysis on real market data: you choose a strategy, a trading style (scalper, day, swing or position) and a pair, and it marks the levels, shows an example entry, stop and target, and scores how many of the strategy's conditions are met. Every strategy has a plain-English, step-by-step guide.

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ICT & Smart Money

ICT (High-Confluence)

Inner Circle Trader method: price hunts liquidity (previous day / Asian / equal highs and lows), shifts structure, then returns to a fair-value-gap / 62–79% "OTE" zone. The scanner checks each condition and scores the setup. No setup is guaranteed to work.

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Order Block Retest HIGH RR

Finds the most recent unbroken order block (the last opposite candle before an impulse that broke structure) in the direction of market structure. Entry in the middle of the block, stop just beyond it, target the nearest liquidity pool at 2R or more.

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Fair Value Gap Retest HIGH RR

Finds the nearest unfilled fair value gap (a three-candle imbalance left by an impulse) in the direction of the trend. Entry at the 50% point of the gap, stop beyond its far edge, target the nearest liquidity pool.

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Sweep + MSS + Retest HIGH RR

A strict four-stage sequence: (1) price sweeps a liquidity pool, (2) a candle closes through the last swing to shift structure, (3) that move is a true displacement — a strong impulsive candle that leaves a fair value gap, (4) price retests the gap / broken level, where the entry sits. Stop beyond the sweep, target the opposite liquidity at 3R or more. If any stage is missing, nothing is shown.

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Smart Money (SMC)

Reads market structure (BOS / CHoCH), order blocks, fair value gaps, liquidity pools and whether price is in premium or discount.

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Price Action

Inside Bar Breakout PRICE ACTION

Finds a mother bar followed by one to three inside bars (the market pauses), then waits for a candle to CLOSE beyond the mother bar. Entry just beyond the mother bar, stop on the other side (the midpoint on tall mother bars), target the next level or 3R.

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Morning / Evening Star PRICE ACTION

Detects the classic three-candle reversal: a big candle, a small indecision candle (the star) and a big candle back the other way that closes beyond the middle of the first. It is scored higher when it forms at support or resistance after a move into the level.

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Tweezer Top / Bottom PRICE ACTION

Finds two consecutive opposite-colour candles with matching lows (bottom) or highs (top) at a swing level after a move into it. Entry on a break of both candles, stop just beyond the shared extreme.

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Price-Action Reversal

Detects pin bars and engulfing candles in the last three candles and checks whether they formed at support, resistance or a zone. Entry is a break of the signal candle.

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Classic Analysis

Top-Down Analysis TOP-DOWN

The professional workflow: start on the highest timeframe, work down one chart at a time, and only look for an entry when the big picture agrees. For each timeframe you see trend, premium / discount position and the nearest key level, then a combined bias, an area of interest and a reference plan.

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Supply & Demand

Finds zones where price left a small base with a sharp, strong move. Demand zones sit below price (buyers), supply zones above (sellers). "Fresh" zones have not been revisited yet.

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Support & Resistance

Shows the price levels the market has repeatedly reacted to (more touches = stronger) together with the previous day / week / month highs and lows and pivot points for your style.

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Multi-Timeframe

Compares the trend on a higher, a middle and a lower timeframe. When all three point the same way the setup is cleaner; when they disagree, patience usually pays.

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Fibonacci

Measures the latest swing leg and maps the 38.2 / 50 / 61.8 / 78.6% retracement levels, the 62–79% golden pocket and the 127 / 162% extension targets, flagging where they line up with other levels.

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High Reward-to-Risk Setups

PWH / PWL Strategy PWH / PWL

The swing-trader version of the PDH / PDL strategy using the previous week's high and low from real daily candles: either a sweep and reclaim (reversal toward the other side of last week's range) or an accepted break that holds on a retest (continuation).

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PDH / PDL Strategy PDH / PDL

Built on real yesterday-high (PDH) and yesterday-low (PDL) figures from daily candles. It finds the most recent event at those levels: either a SWEEP & RECLAIM (price pokes through PDH / PDL then closes back inside, a reversal toward the other side of the range) or an ACCEPTED BREAKOUT that retests the level and holds (continuation). Entry, stop, target and reward:risk are calculated for you.

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Breakout & Retest

Finds a swing level that price recently broke with a strong candle, then tracks the retest. Entry sits just beyond the broken level, the stop behind it, and the target is the next level or 3R.

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Trend Pullback

Looks for a clean trend (21 EMA vs 50 EMA and swing structure), then a pullback of 30-70% into the EMA zone. Stop goes beyond the pullback, target at the 127% extension of the last leg.

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Channel Breakout

Turtle-style breakout of the highest high / lowest low of the last 20 candles. Target is the channel height (measured move); stop is the tighter of the channel midpoint or 3 ATR.

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Asian Range Breakout

Uses the 00:00-05:00 UTC range. A close beyond it, ideally in the London or New York window, is the trigger: entry at the range edge, stop at the midpoint, target 1.5x the range height. Intraday styles only.

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RSI Divergence

Finds price making a lower low (or higher high) while RSI(14) does not confirm it, then checks for a nearby level, an RSI extreme and a confirmation candle.

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Chart Patterns

Double Top / Bottom PATTERN

Finds two swing extremes of about equal height with a neckline between them. Entry on the neckline break, stop beyond the peaks, target the pattern height projected from the neckline.

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Head & Shoulders PATTERN

Detects a head-and-shoulders top (or inverse bottom): a head clearly beyond two similar shoulders and a sloping neckline. Entry on the neckline break, stop beyond the right shoulder, target the head height projected from the neckline.

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Triangles & Wedges PATTERN

Fits trendlines through the latest swing highs and lows to find ascending, descending and symmetrical triangles and rising / falling wedges. Entry on a close beyond the trendline, target the widest height of the pattern.

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Bull / Bear Flags PATTERN

Looks for a sharp impulse (the pole) of at least 3 ATR followed by a shallow, orderly pause (the flag). Entry on the breakout of the flag, stop on the far side of the flag, target the pole height projected from the breakout.

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Advanced

MTF Sniper Setup ADVANCED

One advanced, all-in-one analysis: the daily trend and daily premium/discount set the bias, then the chart must show a liquidity sweep, a market-structure shift and a pullback into a fair-value-gap / order-block inside the 62-79% OTE zone. The target is the nearest daily swing level that pays at least 3R. Few setups qualify; those that do are built for very high reward-to-risk.

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Frequently asked questions

Do these strategies guarantee profits?

No. No strategy wins every trade, and high reward-to-risk setups usually win less than half the time. Forextity scores how many conditions line up; it does not predict outcomes. Use a fixed small risk per trade and test ideas in the free Strategy Backtester and Stress Test.

Which trading style should I choose?

Scalpers use 5-minute charts, day traders 1-hour, swing traders 4-hour and position traders weekly charts. Pick the one that matches how long you want to hold trades.

Where does the market data come from?

Candles and prices come from third-party market-data providers. If they cannot be reached, the tools say so rather than showing estimated numbers.

Risk notice: everything on this page is educational and is not financial advice. Leveraged trading carries a high risk of loss. Read our Risk Disclaimer.