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Trade
The breakdown in trade
Breakout strategies call such systems, which is based on overcoming the price to any significant level, channel, fractal, or anything that is used as a filter to open surgery. Thus, trading can be opened if the price is close to some of the selected trader, the significant price.
For example, in the case that he is dealing with the definition of fractals, the intersection of the market price level of the fractal will be the breakdown. In this case, the transaction is opened in the breakout direction.
Than good data systems, so it is reasonable to assume that a significant level that has been specified by a trader can help price during the breakdown to increase the speed of further movement. The fact that many traders it is based on the price behavior in the region important price level.
So, if there is a break out, it has a psychological effect on speculators, and they are trying to open in the direction of the price movement. Such actions are usually, just pushing the hype and now price is heading in the wrong direction, which was carried out breakdown.
As with any strategy, breakout system, as there is a false entry. To reduce their number by simply picking up their ways of market analysis and identification of those levels that I consider important. In order to quickly understand that the breakdown was false, it is possible to use the translation stop orders for position opening level, after the price passes a certain distance in the direction of profit.
Thus, if the price was, for example, 10 points in the profitable direction, you can set a stop loss order at the opening price of the transaction. If the price reverses and is not gaining strength for further movement, the trade will be closed without loss. Also, you can use a trailing stop to get more profit if price continues to move in the direction of the transaction.
At first glance it may seem that all elementary, but it is not so. First, one needs a method to determine significant levels, which will be used for opening deals when they breakdown. Secondly, you need to wisely choose the currency pair that will be used in trade.
Thirdly, the compilation of a procedure after the opening of the transaction, the so-called support. Study all the rules and will frame the future of the trading system, built on the breakdown of important levels.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 272
| Rating: 0.0/0 |
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