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Forex flat
Flat on Forex is a one of the two States of the market in which the market price fluctuates in a certain price range. The absence of trend movements as well characterize the market situation as to the flat. When the exchange trend is not observed, and the behavior of market prices could be called sluggish, it comes time to speak about what the market is flat. Indeterminate state, when it is difficult to predict further developments. Still about as quiet as the stock exchange saying that it was "the calm before the storm".
Flat (flat flet) the market is for several reasons, some of which can be anticipated, others are not. A situation when the state of the market can be predicted:
• seasonality (when it is possible to assume of trading activity, based on time of year)
• time of day (many trading tools have a characteristic behavior in different periods of the day)
• waiting for release of important news
Experienced speculators are already accustomed that in summer, especially in August, if exchanges are dying. As experts say, the market becomes "thin". After several years of trading, you receive the ability to analyze what is repeated from year to year. So, traders already understand what to expect from the exchange at different times of the year.
At the time of the day the situation is similar. Some trading instruments are losing market activity after the closing of those exchanges which have active trading on this currency pair. The third situation is associated with release of important news. In this case, knowing when it will appear some information which could influence the market, traders try to refrain from making deals.
That is a miracle indicators that predetermine the appearance of a quiet sector of the market, it is better not to think. They all have an error that can reach such a large percentage that does not differ from random events. Such indicators can display, which was the market situation, as well as to demonstrate what is happening at the moment. With a high probability to forecast the further price behavior in the market is incredibly difficult.
Market flat trying to define and use in several situations. First, the trader can assume that in case of violation of the calm situation, the direction in which the price breaks through the channel, will be in the future to determine the trend. Secondly, night scalpers in General are waiting for a flat state of the market to start to perform trade actions. Third, speculators can use to calm the market as a filter to not open the position, relying on the trend.
Each currency speculator to decide what the status of the trading instrument it more comfortable to work with. A lot depends on trading techniques, the elected person is from how the trader is planning to act on the exchange. Both market conditions are neither good nor bad. All depends on how you will use them in their workflow.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 1340
| Rating: 0.0/0 |
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