Trading on the mid-range
forex strategy trading from mid-range
essence forex strategy trading from mid-range the following:
Conclude a deal to buy if the market rises above the middle (50% corrective movement on the Fibonacci sequence) from the last completed movements in the forex market.
Conclude a deal to sell if the market falls below the middle (50% corrective movement on the Fibonacci sequence) from the last completed movements in the forex market.
This trading strategy is poorly applicable to trade in the time ranges over several days. Rather, it is suitable for trading on vnetrednevnyh intervals and for those occasions when you need to hold a trading position no more than 2-3 business days. However, technical chart analysis, in any form must be carried on daily and even weekly time intervals.
identify 50% of the border-ing on Fibonnachii one, or better yet - 2 successively traced recently closed market trends are very often not a problem, but the question remains: What do we use to obtain confirmation of this signal?
I'm sorry, but the simple answer to this question is not - very often this close to the border zone there is little in the market suggests that would definitely happen in the market, and he in turn looks like -as if ready to move in any direction.
Exit should be done about any of the Fibonacci levels or near local minima or maxima in the market - it all depends on what you want to make a profit, and whether they are commensurate with the risks of loss . An example of this forex strategy is shown in Fig.
Fig. 1. Conclusion of a deal to buy at higher market formed above the middle price range and sell at lower below the same level gave traders a good opportunity for profit. Prices in the market several times very easily raised from the middle zone of 10-12%, and fell on it, even a large amount. Profit was recorded at the boundaries of the trade price range.