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

In this case, open positions, either short or long fall into the trap, because they are on the side, which is opposite to the direction of the market, which in turn forces them to close. Thus, it creates the appearance of imbalance between the influx of funds into the market and their outflow.

Such impulsive jumps in prices attract new market participants, which in turn creates a vicious circle. Those traders who sell at local extrema and notice the one-way traffic, the battle begin closing positions. In contrast to the expected rollback of prices, which happens during normal market conditions, there is a state where the market, instead vary the momentum starts to develop.

Because trading range is reduced, we can understand where the market will come from the phase of peace and begin its movement. We see that we are probably waiting for a new breakthrough. The most difficult thing is to understand where to be sent to a breakthrough, because it is still communication between sellers and buyers. The only thing we can do is be prepared for the future growth of market volatility.

There are many strategies that are based on breakouts, can determine the direction of the entrance to the market only after the breakthrough has already taken place, and the market already knows where he wants to go. This technique does not allow the trade to determine the point of reversal, but can be more confident in the direction of the market.

Pleases only that all trading systems, which use technology breakthroughs have quite a high ratio of win / los. But, unfortunately and losses when using these trading systems may be very large. Methods Trade

Methods of trade, which use technology breakthroughs, and trading system, which follow the trend, which is defined in the current day is most suitable for trading the trend of the day. So you want to wait until the market does not determine where it will be sent further movement. For this reason, the number of trading systems may be instructed to enter the market only after the market begins its move in some direction, and then only in passing a certain distance.

We advise you to use such techniques, and they will give you the opportunity to work successfully on the market within the trend of the day.

There morning trading range. It can be defined as the difference Mezhuyev maximum and minimum in the first 1-2 hours from the start of trading. Of course, you can use any other time segments, but it is desirable to use one hour. Having defined the morning trading range, place your buy stop slightly above the maximum of the morning trading range, and sell stop a little below. If you have already opened up their position, then place a stop-and-reverse (stop and turn) at the opposite end of the range of trade.

Large price movement for the first 15 minutes after the opening of the market is called "early entry." Here there is a high probability of market movement in the same direction. If, during those first 15 minutes on the schedule there were two very high 5-minute bars, you must be very quickly be able to enter the market during that pause, which usually takes place.

Many of these trading systems, risk is very big, but still want to draw attention to the fact that with increased volatility of the market rises and the profit that can come of it.

Price breakthrough on the closing. This technique is similar to the previous one, but differs in that the warrant can only be based on a percentage between 1 and 3 ATR (volatility). That is added to the closing price. The advantage of this method is that a warrant for the purchase / sale can be completed even before the start of trade. Drawback of this method is that when the market will fill the gap that has formed during the opening can incur considerable losses. Release Methods

Among the simple and common ways to exit the trend is the same as beginning at the close of the market. Closed at the opposite extreme of the discovery trend day can be called ideal. This method makes it possible for a trader to remain on the market trend full day without running the risk transfer position for the night. For the next day, probably starting with a break in the desired direction. From this technique comes out in the open market the next day.

If you do not want to use techniques that are based on the time factor, then you can use the indicators that are based on prices. It is also worth noting the method of fixation of profit levels near the support / resistance. You can also navigate on the basis of volatility.

Fans of classic technical analysis may be defined on the basis of point-and-figure charts. This method is well applicable, when prices began their movement from the consolidated area or formation that is well defined.