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New Forex Strategies for European Markets in 2017

Guest Author | 23 Jan, 2017  | Follow Author | Add to my Favourites 
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The new year gives traders an opportunity to start from scratch, change their forex strategies, or to set new goals that they want to accomplish. In 2017, the European markets will likely have a lot of potential for forex traders and may be a good place to focus your trading. Understanding the strategies surrounding forex trading is an essential part to finding success, so here we will give a quick overview of potential strategies for European markets in 2017.

Why Concentrate on Europe?

One of the reasons that we think Europe and European currencies will have potential this year is because of the likelihood of currency fluctuations in the region. Given the amount of political instability and the number of political changes on the European continent, it is safe to say that the Euro will face some serious volatility over the coming months. This might be the chance for traders to develop new approaches and apply forex strategies they think will be effective.

For example, the looming exit of the United Kingdom from the European Union is causing a wave of uncertainty across the region. Politicians and economic experts alike are unsure how this change is going to affect the economic bloc and what will happen to the value of the Euro and other major currencies like the United States dollar.

Another thing to keep an eye on in Europe for 2017 is the political situation in France. The populist uprising that led to the election of Donald Trump and the passing of the Brexit vote may also gain force in France, which is set to hold presidential elections in the beginning of this year. If a far-right candidate is elected, there is a chance France too will leave the European Union. If this happens, you can be sure that the Euro will become extremely volatile.

Forex Strategies to Focus On

The following are the top strategies that we think traders should focus on in the European region for 2017:

1) The Bolly Band Bounce Strategy

The bolly band bounce trade is one of the forex strategies that works well for the European market because it is based on trading in a ranging market. Since the Euro is relatively stable and nonvolatile at the moment, this could be a good strategy to help you make some money. You need to identify the upper and lower limits of the currency fluctuation and only trade when the currency is at the outer band of the range, before snapping back in the other direction.

2)  The London Hammer Strategy

This strategy focuses on the London market and the influence that the opening of that market has on the volatility of other markets. When the London market opens, several currency prices are likely to move strongly in one direction, or reverse direction, from the onset. A savvy trader can capitalize on this opportunity by recognizing these trends and trading assets as they develop over time.

3) The Forex Fractal Strategy

The forex fractal is actually one of the most common forex strategies, and for good reason. The strategy is a basic element to understanding forex trading and if you don’t have a good grasp on it, you probably won’t succeed in trading forex. The idea is that forex trends function like a fractal. In nature, a fractal is a pattern that repeats at increasingly smaller scales and they are often present in plants and animals. For forex trading, the same applies; there are often patterns that repeat at different scales within a certain timeframe. If you can identify these patterns, you have an opportunity to make some serious cash.

Overall, these strategies are just three basic forex trading strategies that may help you with the European markets for 2017. Keep in mind that there are a number of different factors that affect forex prices, and that it’s important to keep an eye on all of these factors in order to make the most educated trade possible.


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