In our strategy “Three Moving Averages”, we will use three MAs with different periods. One we will use for trend definition and the remaining three – for the entry and exit signals in the current trend.
Tag: trading strategy
To answer the question in the heading we need to understand what is a flat. In literature, this is characterized as a sideways movement without clear direction up- or downwards. To put it simply, the price is moving to the right, the local maximums and minimums are on the same level.
Most often, beginner traders consider trading the trend to be a complicated process. Today, we are looking into a simple but efficient strategy called Surfing. Using such a strategy, any trader can pretend a surfer catching a wave to ride. However, here we will not just ride the market waves but will try to make a profit on their peculiar movements.
Before talking about strategies, it wold be better to find out what strategies exist at all, which strategy suits which trader and what strategy to choose. Searching for your best strategy through trial and error may take years, that is why this issue requires a systemic approach.
How do you use the GDP data in trading? In the classical variant, the GDP data significantly higher than forecast promises growth of the national currency, so buys are in priority. Conversely, the GDP data weaker than expected entails a decline in the national currency rate, so sells are recommended. Also, you should evaluate the technical picture and prepare a trading plan.
Linda Bradford Raschke is a famous and talented trader. She was born in the USA in 1959. She has been trading for over 35 years. For the start, she used to help her father when she was young. Then, she worked at the exchange.
Most often, using Martingale on Forex is reduced to merely doubling the position after a loss.
The classic Pin Bar forms on the critical support/resistance levels at the maximal/minimal values in the places where, theoretically, the trend may end. However, there are more options for the Pin Bar formation, which are the places of the trend correction.
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.