1. Support and Resistance

This is where you trade based on a breakout from important levels on the chart. You must first determine the support and resistance levels on a higher time frame and then switch to lower time frames. Go short if the price action breaks a support level downwards.

2. Trend Trading

This strategy recommends that you wait for a currency pair to bounce for the third time from the same trend line before you open a trade. When the price action breaks the trend, close a trade. From there, you can then look for another opportunity to open a trade. Make sure to set a stop-loss order to minimise your risk exposure.

3. Candlestick Patterns

This involves scalping based on candle patterns such as Triangle, Inside Bar, Pennant, and Flag. You enter the market based on a direction indicated by a candlestick pattern. Similar to trend trading, a stop-loss order is a must.

 

However one must take note that short term strategy is only suitable to people like Scalper and Day trader.

Scalper
This refers to traders who are into fast-paced trading, holding positions for a few minutes to just a few days. The goal is to profit from small pips as frequently as possible and watch them add up. You’ll find scalpers most active during the busiest times of the day.

Day Trader
As the name suggests, these traders hold positions within the day. Regardless if they end up with a profit or a loss at the end of the day, they close their trades. No overnight buy and hold for these folks.