In this article, we shall have a look at the pros and cons of both systematic and situational trading, discuss their differences, and speak about the practicability of each of them.
Author: Andrey Goilov
the ADX, or the Average Directional Movement Index, has not become as widespread as, say, the RSI. It is most likely due to the complexity of its formula; what is more, it is more of a trend indicator, and a beginner is seldom ready to trade large movements with large Stop Losses.
Most often, using Martingale on Forex is reduced to merely doubling the position after a loss.
Trading against the main trend entails lots of difficulties and additional risks. As a rule, the trader in such a situation tries to catch a correction; however, it would be more efficient to wait for the completion of the current trend and enter a trade in the new trend. Even the most high-quality signal or pattern always realizes if it goes against the main trend. The trader has to be as attentive as possible and control risks if they try to enter trades against the main movement or catch the completion of the latter.
A trend is defined as a sequence of maximums and minimums. If we say that there is a bullish trend on the market, it means that every next maximum is higher than the previous one and every next minimum is also higher than the previous one. In this case only, we may presume that the trend is ascending and try buying.
The Relative Strength Index (RSI) is one of the few trader's instruments able to go ahead of the price. Of course, such situations do not happen every day, however, this feature is really interesting and useful for the analysis of the current market situation.
What is VPS?Types of VPSAdvantages of VPSHow to order a VPSHow to connect a VPS to Windows? Any trader must have faced the need to launch and test a new expert adviser. Forex exchange market works 24 hours a day, 5 days a week; however, testing might be problematic if the main computer is occupied […]
What is MACD MACD settings Convergence And Divergence Trading With The MACD Summary What is MACD The MACD is one of the most popular technical indicators. It is included into most trading platforms for financial and commodity markets. The indicator was created almost 40 years ago by Gerald Appel. It was first used in 1979. […]
Principal of Ichimoku Kinko Hyo The Ichimoku Setup Ichimoku Formula Trading By The Ichimoku Indicator Ichimoku Signals Ichimoku Pros And Cons Summary Principal of Ichimoku Kinko Hyo Ichimoku Kinko Hyo is a technical analysis method devised in 1926 by Goichi Hosoda, better known under the pen-name Sanjin Ichimoku. In Japanese Ichimoku Kinko Hyo roughly means […]