Classic Forex trading tactics
The concept of Forex trading tactics is important, regardless of the chosen trading strategy, because only by using an effective Forex trading tactics, you can fully manage your capital, increasing it.
After the analysis of the market, the trader has to decide in which direction will open transactions, and what part of the capital will be invested in the deal. On the accuracy of the entry, as the market depends on the profitability of the deal. The final decision is made by a trader based on the analysis made by technical factors and used the principles of money management parameters.
Denoting the relevance of the topic Forex trading tactics, go directly to their description.
1. Forex trading tactics in breakouts
There are 3 options:
● early position opening (anticipating a breakout).
● opening the transaction at the time of the breakout.
● trading in rolling back after break.
You can use them separately or combined. Alternatively, open a lot before the breakthrough, after it appeared dokupaemsâ and, finally, open additional transactions correction (a slight drop in prices after the break).
If a trader uses small amounts, it should clearly know what the maximum would be involved and how aggressive would trade.
Conservative traders will choose to wait to roll back down and open a long position. But remember that in this case, you can skip the entry point into the position.
2. Forex trading tactics-crossing trend lines ÒË
A good signal, allowing you to enter/exit the market early enough-very important when crossing the meaningful TL, which has been tested. Of course, you need to take into account the other factors of the technical analysis.
If we use trendlines as support and resistance levels, you need to open a buy position when falling prices to the level of sustained upward TL, and sell positions is up to the level of tunneling TL.
3. Forex trading tactics-using support levels (p.) and resistance (with.)
When breakthrough p. in combination with other signals the beginning of a bullish trend trader can open a long position. StopLoss often have the closest level or just below the level of the breakthrough (breakthrough), which now becomes the standard for the price.
If the price rises to the level of the downtrend or sank to the level of the item when the upward-you can use this fact and to open new positions or add items to an already open transactions. When you install It, pay attention to the support and resistance levels.
4. Forex trading tactics-use adjustment of prices
At Bull trend interim price drop on the Fibonacci numbers (percentage from the previous growth), can and should be used to "top up" or opening new transactions.
38% rollback of prices is a good moment to open a long position on the bull market. Short positions should be open in case of rollback up to a distance of 38-62% on a bearish trend.
5. Forex trading tactics-use spaces (GePs)
The barovom schedule sometimes have gaps (GePs) that can act as levels of p. or pp. for prices. Therefore, the bull market will be worth buying if the price dropped to the upper border of the gap or even a bit lower. StopLoss place under gap. For a bear market-on the contrary.
6. Forex trading tactics-averaging
If the trader opens a position buying, the price went down, it will open again at a better price. This is the average. The main drawback of this Forex trading tactics-we don't know to what level the price will go against us. New position can be opened larger volume compared to the previous one, that with each iteration increases our commitments and risks. In fact, you can use the method of martingale, increasing the size of deals by half each time it opens. But if the price is high, 200-400 points, you could lose all or a substantial part of the deposit. A lot is determined by the starting value of the lot and the distance between orders.
In General, try not to abuse the averaging is if price moves against you and there is no reversal signals, it is better to close all positions and wait another moment to enter the market.
Hopefully, the talk of tactical tricks Forex turned out to be useful to you. Trade with clear criteria and a plan of action with specific movements of the market. Also remember that the profitability of trade is highly dependent on your chosen broker !
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