The concept has its own tools and steps for being successful at it, but you needn’t worry since that’s exactly why we’re here today, to teach you what you need to do just that
The average daily range is a nice tool (or maybe better said, just a useful statistic) that’s most practical for day-trading the Forex market, although it’s definitely also useful for other trading styles like scalping or swing trading.
There are countless ways for traders to improve their trading sessions. Below are a couple of tips that can be used with almost any trading strategy.
Get to know price action and important price levels on the charts
Price action is, without a doubt, one of the most powerful weapons of many traders today. Price action usually has the highest predictive value because it’s not created by complicated calculations, but by the market.
Stop-loss trading orders are one of the most important parts of every forex trader’s strategy. Naturally, there are traders who are brave enough to trade without stop-loss orders or other kinds of capital protection, but it can be very hard for them to achieve stable results long-term.
Whether we like it or not, trading is about estimating and probability that can lead us to our estimations.
That is why this article should not primarily be a guide to profitable trading strategies based on Pin Bar patterns, but an assistant to those who use these patterns so they can eliminate patterns that have a low chance of success.
Let’s go through some techniques that more experienced traders use to eliminate undesirable patterns and false signals.
Volatility is something that is always present in markets, but many novice traders are not really aware of or don’t pay enough attention to. Yet, volatility is an absolutely crucial aspect of trading financial markets because when volatility changes the rules of the game usually change with it. Thus, very often new situations are created in the markets where what worked in the past doesn’t work now.
In this first article of the series on Pivot Points, we’ll discuss one of best ways to use them in your trading which is the 70-80% rule. In this introductory article here you can read about the basics of pivot points and how each of the Pivot Point levels is calculated, while in subsequent articles in this series, we’ll discuss some additional great ways in which Pivot Points can be used to gain an edge in the markets.
And while indeed, governments and central banks have many shameless instances where they actively intervened in the currency markets, most of the time they prefer to just monitor things without getting actively involved.
Combining Fundamentals with Technicals to Trade the Crosses
This holds true both in the short and the long term, so, for example, one day, the US Dollar will be the strongest currency while the Euro will be the weakest on the day, and on another day the British Pound may outperform all while the Euro and the US Dollar will fall somewhere in between.
Examples of using technical analysis on the majors to spot opportunities in the crosses
Here, in this article, we expand the idea of analyzing the crosses through the majors and we take a look at some real world examples of how combined technical analysis on major pairs provided a clue for where a particular cross pair will be moving.