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Short-term trading in the channel

Short-term trading in the channel

short-term trading in the channel (CT) - a discovery order in the forex flat and its retention of a couple of minutes to several hours. Short-term forex trading is used when there are sideways (flat), which can last from a couple of hours to several days (but this is rare). In the short-term trading has a width of not more than 50 points.

Short-term trading in a channel

Rules for the short-term dependent on flat bandwidth:

1) channel width to 30 points.

open sell position (SELL) takes place after the bounce on the line nesolko puntktov from the upper channel line (resistance line) with a mandatory setting a Stop-Loss 20 points above the resistance level (upper line of the channel).

Opening a position to buy (BAY) is on the line after the bounce nesolko puntktov from the lower channel line (support line) with a mandatory setting a Stop-Loss 20 points below the support level (the bottom line of channels).

TK exit poddobnyh flat channels is often a significant price movement, then it suggests that the effectiveness of these operations is very low due to the fact that the risk is greater, but profitability is not comparable small. (Figure 1.3).

Short-term trading in a channel

2) The width of the channel 30 - 50 points.

open sell position (SELL) takes place after the bounce on the line nesolko puntktov from the upper channel line (resistance line) with a mandatory setting a Stop-Loss 30 points above the resistance level (upper line of the channel).

Opening a position to buy (BAY) is on the line after the bounce nesolko puntktov from the lower channel line (support line) with a mandatory setting a Stop-Loss 30 points below the support level (the bottom line of channels).

sharp output with a flat and rarely occurs to such an exit channel is usually influenced by fundamental news haraktera.Chasto flat line after breaking through the channel by 20-30 points coming trend reversal or correction of the trend formed. The main track of the market in volantilnost period the previous few days.

Trade in a flat channel can be profitable and a little safer. Only one problem, that would be to catch a flat to a long period of time. (Fig. 1.4).

As an alternative short-term trading can be considered trade with the simultaneous opening of the opposite positions. This will avoid the risk of losses associated with the breakthrough of one of the lines of the channel (Figure 1.5).

Short-term trading in a channel

Opening a position to sell (SELL) takes place after the bounce on the line nesolko puntktov from the upper channel line (resistance line) with a mandatory setting a Stop-Loss 30 points above the resistance level (upper line of the channel) and Take-Profit of 30 points below the level of support ( the bottom line of the channel).
Opening a position to buy (BAY) is on the line after the bounce nesolko puntktov from the lower channel line (support line) with a mandatory setting a Stop-Loss 30 points below the support level (the bottom line of channels) and Take-Profit of 30 points above the level of resistance ( the upper channel line).
In this case the profit will be:
P = 15 - 5 -10 + 30 = 30 bps

If, however, is close both positions at the level of stop-loss, then the profit would be:
P = 15 -5 -10 10 = 10 bps

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