Thursday, February 26, 2009

The Strategy of Trade on the Breakthroughs

Significant reduction in the longest pass basis, characterized by failed rallies and re-test the previous bottom. As the new consolidation slowly shake past the crowd of losers, the nature of market-based instruments is changed. Prices pushed to the top of key resistance. Short-term relative strength is improving and the schedule creates a number of price bull bars with lines closing near their highs. Finally the movement is beginning to break through the wall of a steady, marked previous failed attempts.

Market-based instruments to overcome the force of gravity, to enter into a new upward trend. The players, aimed at low prices, build a foundation to improve, but can not provide the critical force necessary to make the acceleration of the subsequent rally. Fortunately, the crowd, ohotyaschayasya for momentum podospeet just in time to fill this gap. As the market-based instruments slowly rises above resistance, greed attracts traders who play on the growth, and these players jumps all together at the same time.

The emergence of GEPa with breakthrough has enormous potential for shopping. But the good trader should be careful, if the motion is not accompanied by large amounts. Attacks enthusiastic buyers should bring widespread attention to ensure the continued movement of prices. When unable to show an increase, the GEO could be quickly filled, and the snare of emotional customers.

In the absence of GEPa, waves provide a convenient high volume pricing tier, like GEPu. But support may be more difficult to measure. And the momentum for development may require more time, forcing the price variation in the new range, rather than rise quickly. Fortunately, this scenario also provides opportunities for trade rollback, because the support generates great strengths movement.
Ascending trend faces predictable obstacles marked by consolidation of the previous downward trend. These barriers are frequent falling, which provide good opportunities for purchase. Trader must identify these profitable zones in advance, but also realize that the fall will disappear during the strong rally. In this case, there is a price break through the previous resistance because increasing the enthusiasm of buyers. During a rising trend, the challenge is to determine the purpose of the guaranteed traffic. As the trend of an impulse, as with GEPy wave, and do not have them, will be displayed at the technical indicators such as MACD or ADX. Short setbacks should not violate the calculation of this growing force. Since volatility absorbs each wave, more powerful rally should break. During these events, the price range and scope will be expanded from bar to bar, often reaching a climax in the second GEPe (GEPe continuation) and the final shipe exhaustion.

The Breakthrough and Trend

GEPy at break, more often promoted to higher price levels immediately, rather than simple breaks at high volume. Waiting for corrective rollback may be useless. Extraordinary enthusiasm of the crowd creates ongoing buying at higher levels, and marketmeykery do not need to roll back to form a volume. If it is desirable to enter the market, then use the strategy of following the trend and manage risk, based on the absolute price or percentage limitation losses.

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