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Trade
The emergence of trading signals
Trading signals do not appear out of nowhere. They are the result of accounting important for a trader factors. The difficulty of understanding such a vague definition is the subjective perception of importance of various factors encountered in the trade. Some speculators can base their work on price levels, considering them the most important part of his trading, while others may prefer, for example, wave theory.If the first trader at some point in time have assessed the market situation and saw an opportunity to open a trade, the second speculator, having at the same time your analysis of the market, will remain on the sidelines. All about mortise nature of trading signals in the considered cases.
In the process of forming a trading system the person tries to choose those factors that affect the currency quotes tool. This person considers only "stimuli" that are within his view of trading in the market. Speculator, working on the waves most likely will not be in their system to use a graphical line drawing, fractals, and more. A trading strategy is formed from the cells and modules are parts of this trading. Borrowing from the next trading method, as a rule, quite rare.
*whether the price, it sounds
Once the system is formed it can give a trader the signals the opening, maintenance and closing positions on Forex. The trading signal becomes possible if everything needed to open surgery factors have appeared on the market. For example If a trader decided to trade in the direction of the breakout of a fractal, it may introduce some filter to ignore false signals. As such a filter in this case can serve as a common middle line (MA). The slope of the curve will show the direction of the trend.In this case, if the fractal breaks in the direction opposite the trend, then the signal does not appear (filtered).
Reverse the situation on the contrary will show a positive result, namely, a signal for opening a position. Please note that the above example can be considered very simple. The fact that he has only two factors: the break of the fractal, the direction of the MA. If we only have one factor, for example, the direction of MA, the deal is not finalized, but as soon as there is a break of the significant level in the direction of the middle line, then we immediately see the trading signal.Some factors, like MA in this example can be constant, because the curve is always directed to one side. Other factors are the opposite variables, such as, the break of the fractal, because at the moment it may not be on the market, and after a few moments we will see the breakdown.
As system traders can't imagine trading Forex without systems, we have to consider the need to use the trading signals. Intuitive speculator at any time can see or feel something that will get him to do the operation, but the system the trader will have to expect a new trading signal. The decision of a person to act only on signals may be smart enough even from this point of view, there's no more need to look out for in the terminal or feel. It is sufficient to wait only when all the necessary for setting the position of the factors will seem on the market horizon. Such a psychological relief has a positive impact on the health of the speculator.
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| Category: Forex | Added by: (06.11.2017)
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| Views: 398
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