When the market is in a state of "flat" or "ranging", there are some traders who sought to "buy at low prices and sell at high prices." While this may seem simple, but in practice there is a trick that you should understand.
Aid Trading Range
Trader which uses ranging strategy very utilize patterns in price charts and technical indicators as tools to help them optimize the opportunities to buy or sell.
Typically, the trader will identify the different levels of support and resistance, as a reference level for a buy or sell. This makes the trading market are ranging occurs between two parallel horizontal lines that support and resistance. In the area tersebutlah traders seek to profit from price moves ranging conditions.
The price movement Ranging
Often the price moves between two parallel lines (areas of support and resistance) for days and sometimes within a week before the breakout.
To try to take advantage of the situation, a lot of traders who open short positions at the level of resistance, or long positions in the support area.
In addition, the stop-loss level can be above or below the level of support or resistance to limit the potential risks and ensure that the losses can be minimized if prices do move breakout.
Ranging prices and Breakout
Momentum most frequently occurs is when price moves breakout with great strength and broke through resistance or support level. After that the price will likely move to the next movement targets with a similar setup to the vertical distance between a line projected from the level before the breakout price.
If the breakout is on the upper side (resistance), you need to add a step to measure the level of breakou tto get targeted profit level.
Some traders will take advantage of these opportunities by:
Buying in the area "dip" when the price of trying to move up or vice versa.
Placing a stop loss when the price moves ranging.
Placing a take profit level.
For example: If the price moves breakout then open the option to open BUY position. Trader will likely measure the breakout level to determine the position of stop loss and take profit levels.
However, keep in mind that it takes a certain skill to be able to technically analyze price movements. Therefore regular and consistent exercise should you lakuan. To try to practice this system, there is no harm in opening a demo account first. In addition, the trading system ranging Discipline so that it can work well over time.
Read more - http://belajarforex.guru/belajar-mengenal-rahasia-trading-forex-saat-market-flat/
Aid Trading Range
Trader which uses ranging strategy very utilize patterns in price charts and technical indicators as tools to help them optimize the opportunities to buy or sell.
Typically, the trader will identify the different levels of support and resistance, as a reference level for a buy or sell. This makes the trading market are ranging occurs between two parallel horizontal lines that support and resistance. In the area tersebutlah traders seek to profit from price moves ranging conditions.
The price movement Ranging
Often the price moves between two parallel lines (areas of support and resistance) for days and sometimes within a week before the breakout.
To try to take advantage of the situation, a lot of traders who open short positions at the level of resistance, or long positions in the support area.
In addition, the stop-loss level can be above or below the level of support or resistance to limit the potential risks and ensure that the losses can be minimized if prices do move breakout.
Ranging prices and Breakout
Momentum most frequently occurs is when price moves breakout with great strength and broke through resistance or support level. After that the price will likely move to the next movement targets with a similar setup to the vertical distance between a line projected from the level before the breakout price.
If the breakout is on the upper side (resistance), you need to add a step to measure the level of breakou tto get targeted profit level.
Some traders will take advantage of these opportunities by:
Buying in the area "dip" when the price of trying to move up or vice versa.
Placing a stop loss when the price moves ranging.
Placing a take profit level.
For example: If the price moves breakout then open the option to open BUY position. Trader will likely measure the breakout level to determine the position of stop loss and take profit levels.
However, keep in mind that it takes a certain skill to be able to technically analyze price movements. Therefore regular and consistent exercise should you lakuan. To try to practice this system, there is no harm in opening a demo account first. In addition, the trading system ranging Discipline so that it can work well over time.
Read more - http://belajarforex.guru/belajar-mengenal-rahasia-trading-forex-saat-market-flat/
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