If you want to become a successful trader, you should fully immerse yourself in the topic to find your advantage. In case you are already a winning trader, you should know exactly what benefit you have.
Even advanced traders find it difficult to interpret and trade the strong moves that are often seen in the currency markets. Reading and interpreting price action can be a big advantage for you.
When the market is down sharply, one should be careful to measure the reaction of long positions. You must try to know and understand if the train has the chance to turn into a router.
You should look at the reaction of the long positions as soon as the course moves south. In this way, you can see if the market is sitting on a large number of long positions and if traders want to lose their positions. In case of a spike followed by a sharp V-rebound you should not short the pair.
More shoppers entering the market at a lower level indicate that the market is not very long and traders consider this a golden opportunity. These lower prices mean low prices for you if you want to buy long positions.
Moving A means (MAs) are one of the oldest, truest and tested indicators. The most commonly used moving averages are MA, 50, 100 and 200 days.
The moving averages are essentially trailing indicators and refer to past price actions. MAs can be effectively used in intra-day trading to enter and exit positions in single-use markets.
In times of strong price movements, it is difficult for traders to enter a position because retracements are far and wide. This confuses most traders and forces them to make arbitrary decisions.
MAs can be used as dynamic resistance levels in such situations. This can give better results than the static support / resistance levels used by the majority of traders.
The benefits of using MAs in this way provide you with a dynamic level to weigh and evaluate price evolution. MAs can help you avoid arbitrary levels if you are to make a profit.
Mr. Ahmad Hassam is a graduate of Harvard University. He is interested in daily and swing trading stocks and currencies. Discover a revolutionary forex robot trading system. 1500 pips in one day – Try Strignano Forex signals for two weeks for free!
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