Rayet Honer is a professional trader with over 15 years experience in the markets. She taught a method of technical analysis and graphical strategies for students everywhere.
As an international author, Rayet taught trade currencies, futures and stocks more than a decade. Specializing in the schedules and pricing activity, Rayet continues to teach the tools and strategies that are addressed to traders focused on a deep study of technical analysis and market psychology.
Using the experience of a real trade in their strategies, Rayet improved a number of technical tools to develop automated tools for graphic intensive traders and investors.
She was interviewed by several radio programs and conducted his own radio program on training and technical analysis. Rayet a popular lecturer and conducts seminars throughout the U.S., Canada and Asia. It is also often invited to teach technical analysis on forex market.
Rayet has written over 100 articles on investment, trade and market psychology. It also advises the financial managers and managers of hedge funds. Its graphical analysis and comments appear frequently in various specialized sites and in magazines and she is a regular customer radio «MoneyWatch».
Skyscrapers market
«The main principle of my trade can be divided into two simple steps: (1) The definition of the trend: short-and long-term. (2) The presence of a potential turn in the trend ».
Let's investigate this principle further, because it is a psychiatric unit, I ask myself at the conclusion of their deals. This may sound very obvious, if not trite, but the transaction consists of three items:
Login
A potential target for profit
The potential level of stop-order
I use three tools to take those decisions: Fibonacci levels, trend lines and trend indicator. Here is an example of a typical schedule:
Figure 1
Three tools are active at this afternoon's schedule Monetary Instrument EURUSD. First, let's look at the trend indicator, built triple purple line. Then, we can see two trend lines on the graph, and finally, the Fibonacci levels on the right side. All three tools are automated and adjusted to the price action.
So, how these tools help me make decisions about my three points? I just start to ask yourself some questions - of course, this is not the science of building missiles, because all the reflections made in response to questions.
First question: I have to «weak» or «strong» side of the trend? This can be easily identified by looking at what the market instrument is traded above or below the triple purple line. In the case presented in this article, you can see that we are on the weak side of the trend.
Weak side means that the short position will be on trend, while the longest will be counter-trend position. In trading on the Forex market (as you can see in the first graph in this article), I usually watch two time formats: 60-minute schedule and daily schedule. (Trader can monitor any number of temporary file formats. For example, a 240-minute schedule is another popular time scales). If you sell during the day, it is always necessary to see whether the intra-day trading in the direction of or against the direction of trend day schedule, so be sure check for the long-term trend.
The second issue relates to finding the potential to turn into a trend. This, in essence, means that in order to pinpoint targets for profits and the levels of stop-orders, I must decide where, I think, the market spread. Turn to the direction of my trade is the goal of profit, while the spread against the direction of my trade is an area in which I will place the stop order. Let me explain this:
I use Fibonacci levels to achieve this. These levels allow me to find the levels of support and resistance within the trend, or «the most recent major motion». The following graph shows how it works:
Figure 2
Fibonacci levels on the right side of the graph show, where the market-based instruments, most likely will be traded and then potentially meet the support and resistance. With the sharp decline from the peak (marked by blue triangle), we can see that the market-based instruments are very short stop at the level of 0.500, and then immediately passed through the levels of 0.618, 0.786 and 1.000.
The level of 1.272, finally, provide some support in the way of the free-fall. Each level may have been a potential entry or a view of profit for short positions. (Note: I only consider here the management deal, and not to enter.)
Levels had not complied with all the same its full role! Now, all these potential levels of support are a potential drag. At this point, we see that the level of 0.786 impedes price move higher.
Think about Fibonacci levels as a skyscraper. Each floor is supported by every ceiling is resistance. However, the ceiling of one floor is for someone above him. This is a support and resistance are, therefore, important to monitor the levels going up and down.
I can also use these levels to accommodate the freeze orders. For example, the short position may be closed at this level of 1.272, because it pushed the price from that level and now the level of 1.000 can be a ceiling (ie, resistance), and above it can be placed a stop order, if I agreed to have leave short position and wanted to protect their profits.
I have not yet discussed the technique of input and do it in another article. This also brings me to another point: most of the transactions depends on a successful exit. Log in - it's quite an easy part of the deal. A timely exit - this is what is often the result depends. And when I'm talking about, I mean outputs, as with the loss, and with profit.
Based on this philosophy, it is not the sole purpose of profit, because there is no single level of stop-order. These levels are supported by price action. If a trader enters the market, based on the schedule, any way, whether at a profit or loss should also be based on the schedule. That is why I am always looking for graphics, following my two steps, as described at the beginning of this article: «1). Finding a trend: short-and long-term. 2). Finding a potential turn in the trend ».
So, I hope that, perhaps, has raised some questions and you have sparked some curiosity. Let me show you another schedule with all active instruments, so you can make some of their own conclusions. Check the schedule EURUSD 60-minute time scale with Fibonacci levels, trend lines and trend indicator, and then I will give you a few points on which to focus is:
Figure 3
What is worth watching:
Trend indicator is neutral. See how quickly it shows lateral movement, and the prices traded within it, rather than above or below it?
0.786 Fibonacci level is the resistance, as described above. Are there other levels of resistance?
Pay attention to the downward trend line.
As an international author, Rayet taught trade currencies, futures and stocks more than a decade. Specializing in the schedules and pricing activity, Rayet continues to teach the tools and strategies that are addressed to traders focused on a deep study of technical analysis and market psychology.
Using the experience of a real trade in their strategies, Rayet improved a number of technical tools to develop automated tools for graphic intensive traders and investors.
She was interviewed by several radio programs and conducted his own radio program on training and technical analysis. Rayet a popular lecturer and conducts seminars throughout the U.S., Canada and Asia. It is also often invited to teach technical analysis on forex market.
Rayet has written over 100 articles on investment, trade and market psychology. It also advises the financial managers and managers of hedge funds. Its graphical analysis and comments appear frequently in various specialized sites and in magazines and she is a regular customer radio «MoneyWatch».
Skyscrapers market
«The main principle of my trade can be divided into two simple steps: (1) The definition of the trend: short-and long-term. (2) The presence of a potential turn in the trend ».
Let's investigate this principle further, because it is a psychiatric unit, I ask myself at the conclusion of their deals. This may sound very obvious, if not trite, but the transaction consists of three items:
Login
A potential target for profit
The potential level of stop-order
I use three tools to take those decisions: Fibonacci levels, trend lines and trend indicator. Here is an example of a typical schedule:
Figure 1Three tools are active at this afternoon's schedule Monetary Instrument EURUSD. First, let's look at the trend indicator, built triple purple line. Then, we can see two trend lines on the graph, and finally, the Fibonacci levels on the right side. All three tools are automated and adjusted to the price action.
So, how these tools help me make decisions about my three points? I just start to ask yourself some questions - of course, this is not the science of building missiles, because all the reflections made in response to questions.
First question: I have to «weak» or «strong» side of the trend? This can be easily identified by looking at what the market instrument is traded above or below the triple purple line. In the case presented in this article, you can see that we are on the weak side of the trend.
Weak side means that the short position will be on trend, while the longest will be counter-trend position. In trading on the Forex market (as you can see in the first graph in this article), I usually watch two time formats: 60-minute schedule and daily schedule. (Trader can monitor any number of temporary file formats. For example, a 240-minute schedule is another popular time scales). If you sell during the day, it is always necessary to see whether the intra-day trading in the direction of or against the direction of trend day schedule, so be sure check for the long-term trend.
The second issue relates to finding the potential to turn into a trend. This, in essence, means that in order to pinpoint targets for profits and the levels of stop-orders, I must decide where, I think, the market spread. Turn to the direction of my trade is the goal of profit, while the spread against the direction of my trade is an area in which I will place the stop order. Let me explain this:
I use Fibonacci levels to achieve this. These levels allow me to find the levels of support and resistance within the trend, or «the most recent major motion». The following graph shows how it works:
Figure 2Fibonacci levels on the right side of the graph show, where the market-based instruments, most likely will be traded and then potentially meet the support and resistance. With the sharp decline from the peak (marked by blue triangle), we can see that the market-based instruments are very short stop at the level of 0.500, and then immediately passed through the levels of 0.618, 0.786 and 1.000.
The level of 1.272, finally, provide some support in the way of the free-fall. Each level may have been a potential entry or a view of profit for short positions. (Note: I only consider here the management deal, and not to enter.)
Levels had not complied with all the same its full role! Now, all these potential levels of support are a potential drag. At this point, we see that the level of 0.786 impedes price move higher.
Think about Fibonacci levels as a skyscraper. Each floor is supported by every ceiling is resistance. However, the ceiling of one floor is for someone above him. This is a support and resistance are, therefore, important to monitor the levels going up and down.
I can also use these levels to accommodate the freeze orders. For example, the short position may be closed at this level of 1.272, because it pushed the price from that level and now the level of 1.000 can be a ceiling (ie, resistance), and above it can be placed a stop order, if I agreed to have leave short position and wanted to protect their profits.
I have not yet discussed the technique of input and do it in another article. This also brings me to another point: most of the transactions depends on a successful exit. Log in - it's quite an easy part of the deal. A timely exit - this is what is often the result depends. And when I'm talking about, I mean outputs, as with the loss, and with profit.
Based on this philosophy, it is not the sole purpose of profit, because there is no single level of stop-order. These levels are supported by price action. If a trader enters the market, based on the schedule, any way, whether at a profit or loss should also be based on the schedule. That is why I am always looking for graphics, following my two steps, as described at the beginning of this article: «1). Finding a trend: short-and long-term. 2). Finding a potential turn in the trend ».
So, I hope that, perhaps, has raised some questions and you have sparked some curiosity. Let me show you another schedule with all active instruments, so you can make some of their own conclusions. Check the schedule EURUSD 60-minute time scale with Fibonacci levels, trend lines and trend indicator, and then I will give you a few points on which to focus is:
Figure 3What is worth watching:
Trend indicator is neutral. See how quickly it shows lateral movement, and the prices traded within it, rather than above or below it?
0.786 Fibonacci level is the resistance, as described above. Are there other levels of resistance?
Pay attention to the downward trend line.
Rayet Honer
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