After looking at the ups and downs of prices lately, traders enough difficulty in identifying the price in the market. With a pattern of triangle, traders can be helped to identify the price in the market. In a strong trend, market decisions tend to be more easily identified by the trader. Traders simply make a purchase when the uptrend and make sales in a situation that tends to decrease (downtrend). However, when the market is not decisive in determining the price of a trend, it does complicate the trader in taking decisions.
This situation occurs when too much of a trend trader suddenly opens a transaction against the emergence of new trading. So what should we do when there is no highest or lowest point in the market while we must continue to be in trading?
One of the suggestions that can be done is to try to wait for the price to use finite pattern triangle. The pattern of the triangle formed by connecting the line pair of currency money with point support or resistant. Below we can see the triangel pattern formed on the GBPJPY. Price resistance is seen from the highest point that is gradually moving towards the lowest point. At the same time, the support line can be viewed down to the lowest position. Once this area is identified, we can proceed with the strategy break.
This situation occurs when too much of a trend trader suddenly opens a transaction against the emergence of new trading. So what should we do when there is no highest or lowest point in the market while we must continue to be in trading?
One of the suggestions that can be done is to try to wait for the price to use finite pattern triangle. The pattern of the triangle formed by connecting the line pair of currency money with point support or resistant. Below we can see the triangel pattern formed on the GBPJPY. Price resistance is seen from the highest point that is gradually moving towards the lowest point. At the same time, the support line can be viewed down to the lowest position. Once this area is identified, we can proceed with the strategy break.
Prepare An Order To Stop The Breakout
After the pattern of the triangle is obtained, we can start preparing for a breakout. By using good entries OCO, buy and sell can be ordered at the same time.
This pattern will help a lot if you're not sure where it will lead. If the price is above the point break resistant, we buy the GBPJPY. Conversely, if the price fell below the point of support, we sell the currency pair. It should be noted that as soon as an order is executed, then the other should be deleted pending orders. When creating OCO orders (Stop Order), apply a second pending order, direct that one buy and one sell.
Traditionally, most traders use the ratio 1: 2 Risk/Reward or more when applying breakout method. It can be diekstrapolasi by finding twice as many pips profit as we bet using the stoploss.
Posted by Unknown on Monday, February 2, 2015 - Rating: 4.5
Title : Analyse The Market With A Triangle
Description : After looking at the ups and downs of prices lately, traders enough difficulty in identifying the price in the market. With a pattern of tri...
Description : After looking at the ups and downs of prices lately, traders enough difficulty in identifying the price in the market. With a pattern of tri...
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