strategies forex breakout prices
strategies forex breakout through the existing price levels are considered more effective ways to control trade transactions, providing the trader to high profitability and very often they have an association with stop orders, which open directly into breakthrough price point levels, thus providing a chance to take a trading position at the beginning of the growing momentum move.
However, stops are not always very practical, and sometimes even dangerous to the trade of the deposit, so this type of trade is not always justified. For forex strategies, calculated for breakthroughs, options trading on the market with limit orders allow traders to profit at sufficiently low risk. It is best to implement it can be directly during the subsequent corrective movement in the market.
Conclusion of a deal to buy the level of support in the area between the penultimate and the first peak prices Fibo-level last complete market movements in the market down.
on the growing forex market, we often see prices move up, which develop a zigzag pattern. Usually, the first third of the trend, as soon as he had already delineated and bulls in the market have moved to the offensive, the Bears (who wish to sell) still possess great strength, so they often get after each burst rates up to lower prices so that they are at this fall to the level of the penultimate peak of the market. As a result - sometimes fall stops, then need a new surge, which pushes prices higher. However, the market - this is absolutely not a place where all levels are marked up and will stand in their places, and that is why at the last summit, and prices are subject does not find support, while leaving out even further. If the trend in the market is strong, the depth of the lower prices rarely exceed 23% level of Fibonacci, and even fewer - 38% level of Fibonacci to the latter, fully completed price moves down.
Exactly this zone, which is limited to the penultimate vertex in the graph, and 38%-s of the last completed level of Fibonacci price moves down, is a better place to make a deal to buy . Figure 2 shows the search terms for the transaction to purchase.
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Fig. 2. Conclusion of a deal to buy in a price range between the top and a level of 23.6% from the movement Fibonapchchi 1-2 - the most opportune moment for those who want to take a long trading position . It should be noted that the level of the Fibonacci 38.6% - a level of price peaks 1-3 from 1, it coincides with the 23.6%-s Fibonacci level 1-2 from the top 1. Segment 1.2 or 1-3, which are relatively similar, as determined by the last completed movement of the price down. Movement to point 4 - a completed movement of the price upward, and from point 4 in the direction of the arrows - in progress down the price movement, which remains so until the turn.
a deal to sell on the resistivity in the area between the first and penultimate base Fibo-level complete the market price moves up.
As in the case of points 1 and 2, point 4 - point 3 a mirror image, designed to conclude a deal to sell when prices return adjustment in the market upward. In the currency market, which is going to go down, sometimes breaks are determined at the time of breakthrough levels that were achieved in the previous price lows. Very often, mainly in the early stages of a trend down, recovery in the market returns prices to the level of penetration of the support with the possibility of punctures above. Here - is precisely the place where you need to make a deal for sale . Find more precisely the zone of resistance will help Fibo-levels , among which the best works of Fibonacci 38% level. But sometimes it is good enough and the level of 23.6% Fibonacci, which indicates a pronounced weakness of the market and its desire to go down.
In Figure 3 you will see how we can apply the rules described above to Trade: A level was determined on a price point of the base 1, Level B - the level of 23.6% Fibonacci of the interval 1-2; Level C - level of 38.6% Fibonacci interval 1-2.
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Fig. 3. Selling price of which has been defined between the base and a level of 38% Fibonacci of motion 1-2 - the best place for making short trading positions . 02/01 segment was defined as the last completed move prices higher. Movement to Point 3 - the completed movement of the price down, but from the point on the graph 3 in the direction of the arrow - in progress upward price movement, which lasts until a new price reversal on the chart