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Trade
Trade with revolutions
Sometimes, in trading, there are situations when you are sure that the price is now briskly move up or down. The trader uses his trading system and determines that it is more likely the movement of the currency pair up. Open the position on purchasing put Take Profit and Stop Loss. Time passes and the price really sharply and takes off, leaving all below.
The man realizes that he was wrong, his Stop Loss is already affected and the transaction is recorded with a loss. At this moment there is an understanding that development of the market situation will be in the form of the downtrend.
So why miss another signal, when it is possible to "roll over" and begin selling?
Forex coups
The method is controversial, however, as most of those used in Forex, but, nevertheless, not devoid of meaning. The upheavals in trade may be used when there is reason to believe that the market now will be dominated by trend movements, and not flat. Often harder to understand in which direction we can expect such a development than to predict when it would happen.
Using flips in Forex trading the person focuses more on the question of "when" and not "in what direction". If your trader direction was not correct, then the speculator makes a reversal of a position and ready to profit from the continued movement.
Usually, the turn order is put immediately a Stop Loss first transaction. It turns out that the market price of the knocks Stop Loss, thereby closing the losing position and immediately opens a new trade in the opposite direction first. Thus, in the case that the market has already determined the vector of its development, the second attempt is for a trader profitable.
The reversing positions
Consider the example of revolution in Fig.1. At point No. 1, the speculator decided to make a deal for the sale of a currency pair. Exposed to position Stop Loss to break the market price and the proceeds directed movement. Almost immediately a Stop Loss the trader flips, buying a currency pair. We have previously examined on the website the principles of the revolutions, spoke of the "ladder" of orders.
Now I would like to draw attention to the fact that this technique is the analogy of locking, which is about as early mentioned. All actions, which makes the dealer with the coup, can be represented in the form of working with locks.
In this case you can not fix a loss on the first transaction, and put the loc to continue to open lock "lock". Coups can be considered the alternative of locking, so as, while preserving the essence of the process, changing only the psychological perception of trading.
When it makes sense to flip the position on Forex:
• if transactions are made at the first signs of the formation of a new trend
• if there is data that confirms that we chose the right direction in their deal
• if the closing signal, for example, sales changed the buy signal (as the intersection of two middle lines MA)
• when waiting for a breakout, for example, the price channel in any of the parties and the first test was false (example in Fig.2)
Do not forget that psychological factors greatly affect the quality of the work of speculators, but because many work with the Stop Loss can be easier psychologically than trading with lokas. At the same time, to change the direction of its position only in the case when such actions are reflected in Your system.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 251
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