Forex ENTRY STRATEGY (SET-UPS)
Profitable trading systems start with the formation of a good forex strategy for opening a position. In recent articles we explain it-except on the functioning of the Forex market mostly discussed the importance of fundamental analysis and technical analysis. Prices in financial markets are established through the direct action of supply and demand, and fundamentals and technical indicators can provide insight into the relative strengths of the bulls who go for the uptrend and downtrend the warriors we call the bears. In upcoming articles we include in the successful use of information, but also other issues that are important for successful trading.
Set-Ups
Most Forex traders use fundamentals (news) and technical indicators to find the appropriate entry point for their trade. Often they use different indicators, all in a certain direction should point before a position is taken. Such a set of conditions which must be met before a position is taken in traders jargon is called a Set up.
Example of a Set up:
1) Bollinger Bands to the significance of price movements may indicate.
2) Price to the upper or lower band break (break out)
3) Price candle must also close above the upper or the lower band
4) Prices should then retracen below the upper band (in case of uptrend) or above the lower band (in case of downtrend)
5) If these four conditions are met, the set up is completed, and takes a position in the trader in the direction of the break-out.
Another example of a Set up:
50 euro free markets
The famous group of traders with the illustrious name Turtles made in the 80's hit. It was a group of about 10 people, ranging from postal workers to accountants who have no had experience occurred, until a very successful trader in the care taken, because the latter wanted to prove that you have successfully entered everyone could learn. The Turtles earned in some years more than $ 100 million. One of their favorite set ups was the search to 20 day highs / lows of a commodity. Then they positions in the direction of the break-out.
related posts
- Macd/Osma
- Osma Indicator
- Gator Forex
- Applying Elliott Wave Theory Profitably
- Forex Indicator System
Forex is simple follow the trend and you will rich.
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