Before designing a forex trading strategy during a pandemic, it's a good idea to pay attention to global market conditions. Currently, many currencies are affected by global uncertainty. However, some currencies have strong performance.

This makes the currency feasible to trade even when conditions are unstable. For example the US Dollar. Even though the United States economy was hit by the pandemic, its currency tends to be more stable when compared to currencies of other countries.

Therefore, it is not surprising that the US Dollar still shines as a Safe Haven asset. In a way, the US Dollar is a pillar of stability in the forex market.

Choosing the right pair is also an important aspect when designing a forex trading strategy during a pandemic. One instrument that is quite safe in this case is EUR/USD.

However, you should still pay attention to the condition of the US economy and the Eurozone if you are interested in trading EUR/USD. At the start of the pandemic, oil prices crashed due to slowing global demand.

However, as world conditions improved, demand for black gold began to arrive. As long as you enter the market at the right time, it is not impossible to make money through oil trading.

Meanwhile, other Safe Haven assets such as gold experienced wild movements during the COVID-19 pandemic. The reason is, this instrument sometimes moves against the news that comes out.

Forex Trading Strategy in Pandemic Period

If you use a news trading strategy to analyze this asset, you should be even more careful. Use technical indicators to complement your analysis to get more accurate results.

Several important points must be noted before designing a trading strategy during a pandemic. The first is don't panic, and make sure you collect complete information from the best forex broker before trading.

In addition, you also have to trade selectively and apply risk management. Don't forget to diversify your trading portfolio to protect your assets from market turmoil during the pandemic.

However, if you decide not to trade, you should use your free time to hone your trading skills and techniques, for example by using a demo account.

Scalping with Stochastic Oscillator

One of the trading strategies during a pandemic that can be learned is scalping with the stochastic oscillator. This method is suitable for fans of short-term trading or day traders.

The goal is to make a profit by taking advantage of the high volatility in the market. Usually, this type of trader uses the stochastic oscillator as an analytical tool.

The stochastic oscillator has two levers: lower and upper. The upper level indicates an overbought condition in the market, while the lower level indicates an oversold signal.

This forex trading strategy is suitable to be applied to charts with a time frame of 4 minutes or 5 minutes. Oscillators can help traders to find buy and sell positions. 

However, the drawback of the stochastic oscillator is the appearance of false signals that can mislead traders. Fortunately, this can be overcome by using other indicators such as Bollinger Bands. To look for a confirmation signal, the trader must wait for a cross to occur.

After that, traders can look for buy and sell positions. One pair that is suitable to be traded in this way is GBP/USD which has high volatility.

However, there are several things that traders must pay attention to when implementing a trading strategy during a pandemic using the stochastic oscillator. 

The first is fundamental news, traders should pay attention to the release of economic news of the currency being traded. In addition, it is safer if traders use low leverage. Finally, traders should apply risk management to reduce losses.

In addition to the right strategy, you also have to pay attention to the broker you are trading with. Make sure the broker you choose is licensed like Didimax forex broker so that your transactions are safe.

After carrying out the right strategy together with a trusted broker, then you can trade and start making profits. The right forex trading strategy during a pandemic is very necessary so that you don't fall into losses.