Their are a handful of technical trading strategies to use on the foreign exchange market. We've highlighted the most popular trading strategies, and exactly what they provide to the average forex trader. These strategies involve price trends, and here is a look at each one of them.

Elliot Wave Theory

This strategy is based on a theory that markets move in the continuous ebbs and waves. This theory argues that a market cycle tends to be complete once there have been five wave cycles.

Fibonacci Numbers Theory

This strategy is based on a theory that is named after a 12th century italian mathematician. This theory argues that their are certain numbers that possess a relationship with each other. This strategy often works with the idea of having two numbers and adding them together to make a third number. An example of this strategy would be: 1+1=2; 1+2=3; 2+3=5; and onward.

Pivot Point Theory

This theory determines the numerical averages of a currency's low, high, and closing price. From these averages, you can decide on when you should buy and sell on the foreign exchange market.
Parabolic SAR Theory

This strategy is based on the stop-and-reversal theory. Any currency that is trading below its stop and reversal rate should be sold, and any currency trading above that rate, should be bought.