Senin, 04 April 2011
Forex trading tactics
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When analyzing the market traders must decide whether he wants to buy or sell. In addition, the amount of money invested must be defined. Finally, a trader must choose between buying and selling contracts. The importance of determining the right time to enter or exit the market to make it part of margin trading of the most complicated. The decision on when to enter the market should be based on a combination of technical factors, the management of money and types of orders.The process of determining when to enter or exit that is marked by short-term and not measured by weeks and months, but by hours and even minutes. But in all cases, the technical equipment used in the same. The main principles of analysis as listed below.
1.Tactics based on Price Breaks.There are three ways to trade with the help of price breaks: close positions quickly; open position when the break is in progress; wait rollback after the break. Each approach has many advantages and disadvantages, so that the combined approach is sometimes used. When working with some of LOT, a trader can open one position on each of three stages. In addition, the trader might open a small position before the break is estimated, and then open additional positions at the insignificant price decline during the correction that followed the break.
2.Cross trendlineThis signal allows the trader to enter the market or to leave immediately, especially when the trendline is significant and reliable has been skipped. Of course, other technical factors should also be considered.
3.Support / Resistance LevelsA break of support level can indicate to open a long position / buy. Signal stop loss can be placed under the nearest support level or directly below the break, which will perform support functions in this case. The price declined to the level of support during an uptrend, and advanced to the level of resistance during a downtrend can be used to open new positions and add lots if that benefit has been opened. When setting stop loss signal, it is important to take the level of support / resistance to be calculated.
4.GAPThe gap formed in the bar chart can also be used to choose the right moment to open or close a position. Stop loss can be placed under the gap. During the tendency of the short position / sell should be opened when the price reaches the lower limit of the gap. Stop signal should be placed above the gap in this case.
5.AverageingAveraging is a trading strategy that is used when traders have made a mistake or open trade and prices have moved against him. In this case traders perform a new operation of the same type but with a more favorable price. However, the average has a weakness - no one knows in advance what price to the market is going against the trader. And the need for averaging for each time invest double the amount of money invested before.
5.Scalping StrategyOther traders, scalping, generally used by traders to work with a very short term - one minute or five minutes. If prices go up traders to buy, in the case of recovery he sells. As a rule, merchants engaged in transactions around 15-20 days. The downside of this tactic is that the trader must always look at the market and can not divert his / her attention from the charts.We have to explain trading tactics of the most popular and well known, but the choice always depends on the trader. Perhaps you will choose a strategy and switch to a more suitable in the future.
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| Forex trading tactics |
1.Tactics based on Price Breaks.There are three ways to trade with the help of price breaks: close positions quickly; open position when the break is in progress; wait rollback after the break. Each approach has many advantages and disadvantages, so that the combined approach is sometimes used. When working with some of LOT, a trader can open one position on each of three stages. In addition, the trader might open a small position before the break is estimated, and then open additional positions at the insignificant price decline during the correction that followed the break.
2.Cross trendlineThis signal allows the trader to enter the market or to leave immediately, especially when the trendline is significant and reliable has been skipped. Of course, other technical factors should also be considered.
3.Support / Resistance LevelsA break of support level can indicate to open a long position / buy. Signal stop loss can be placed under the nearest support level or directly below the break, which will perform support functions in this case. The price declined to the level of support during an uptrend, and advanced to the level of resistance during a downtrend can be used to open new positions and add lots if that benefit has been opened. When setting stop loss signal, it is important to take the level of support / resistance to be calculated.
4.GAPThe gap formed in the bar chart can also be used to choose the right moment to open or close a position. Stop loss can be placed under the gap. During the tendency of the short position / sell should be opened when the price reaches the lower limit of the gap. Stop signal should be placed above the gap in this case.
5.AverageingAveraging is a trading strategy that is used when traders have made a mistake or open trade and prices have moved against him. In this case traders perform a new operation of the same type but with a more favorable price. However, the average has a weakness - no one knows in advance what price to the market is going against the trader. And the need for averaging for each time invest double the amount of money invested before.
5.Scalping StrategyOther traders, scalping, generally used by traders to work with a very short term - one minute or five minutes. If prices go up traders to buy, in the case of recovery he sells. As a rule, merchants engaged in transactions around 15-20 days. The downside of this tactic is that the trader must always look at the market and can not divert his / her attention from the charts.We have to explain trading tactics of the most popular and well known, but the choice always depends on the trader. Perhaps you will choose a strategy and switch to a more suitable in the future.
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Forex trading tactics
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