Posts Tagged ‘trend’

The essence of the change in trading range

On the emergence of the trend of the day may indicate a few signs, but the most common of them are the reduction of volatility or trading range. In a sequence of low / high volatility there is some cyclicity. The market is in a state of oscillation between moments of calm and moments of its movement up / down. Volatility of the market more exposed to cyclical than its price.

When the market is calm, then there is some balance between transactions for the purchase and sale transactions on a thus, the trading range becomes smaller. If the market starts to leak new information, it destroys the well-established balance of price and the market begins to look for new areas of

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In search of trend days (strategies and techniques)

That day, during which the expansion takes place daily trading range, with prices opening / closing are located at different ends of the range, side by side next to the large and small values of trading day, the day is called a trend.

During the first 30 minutes of trading the price movement is not more than 10% of the total for the whole day. This kickbacks indicators quotations during the day (trading day) are small. Trend day occurs during the large gap in prices during the opening, which create deficits purchase. In this case, the market opens and closes on the extreme values of prices. (more...)

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Trading for trends

Any workable trading strategy should be implemented as a minimum, the following principles:
• trades only in the direction of the trend;
• Limit the size of losses;
• ensure profitable growth;
• Do not forget about risk management.Any, is adopting the trading system, you should test for the presence in it of the above components.

Requirement of trade on trend defines the rules for entry into the market. To succeed in trading you have to open up their positions solely in the direction of current price movements.

Analysis of market processes shows that prices are moving mostly at random, and the proportion of the orderly movement of the trend is very small. This fact is fundamental, basic for those who organize their trade on a sound scientific basis. It follows that all attempts to trade with the involvement of the methods are not based on trends - a sure path to failure. Read the rest of this entry »

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Trading: Margin Trading

Transactions in currencies on Forex admit her as a real delivery, usually on the next working day for the transaction, with and without the use of margin trading.

Transactions in the foreign exchange markets are fixed amounts (lots), the minimum of which is 100 000 dollars. Owners of smaller capital to trade using the insurance deposit is called margin (margin trade) or leverage (leverage trade) trade.

Meaning of margin trading is that trading in Forex can be without resorting to the real money supply, which excludes the cost of their movement, and allows bidders with smaller accounts to make transactions with any currency. This procedure significantly accelerates the implementation of transactions and increasing the amount of potential profit in any direction of market prices.

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