For total beginners, it is important to start with a simple and easy-to-follow trading system. Here are a few examples of trading systems that may be suitable for beginners:
Moving Average Crossover: This system is based on the intersection of two moving averages of different lengths. When the shorter moving average crosses above the longer moving average, it is considered a buy signal, and when the shorter moving average crosses below the longer moving average, it is considered a sell signal.
Price Action Trading: Price action trading is a system that involves analyzing the price movements of a currency pair without the use of technical indicators. Traders can identify support and resistance levels, trend lines, and chart patterns to determine potential trading opportunities.
Breakout Trading: This system is based on identifying key levels of support and resistance and entering trades when the price breaks out of these levels. Traders can use technical indicators, such as Bollinger Bands or Donchian Channels, to identify potential breakout points.
Trend Following: This system involves identifying the direction of the trend and entering trades in the direction of the trend. Traders can use moving averages, trend lines, or other technical indicators to identify the trend direction.
It's important for beginners to start with a simple system and practice with a demo account before using real money. As traders gain more experience and knowledge, they can customize and adapt these basic systems to better fit their individual trading styles and preferences.