The graphical model is good only until the price action as it should. Many traders hunt for patterns, thinking that any emerging model is ideal for trade and should be used. Unfortunately, this approach - this is the best way to lose money.
Trading patterns are projected prototypes, no more and no less. Some developing with textbook perfection, while others are not going to show any connection with the theory.
Good execution of trade - this is a three-stage process. You find a model, then see how price interacts with it, and then decide whether to actually trade on the model. Sufficient proportion of models have never reached the third stage - the moment of decision and must be rejected without much thought. Many traders have a problem with this limitation, because they expect that the markets can earn both at the races, through a simple strategy to choose and play. " In other words, they open position, just as a player puts on the horses. But markets do not work that way and opening positions can not be treated like the rates for racing.
When a new model, who is - I always wondered where they were "supposedly" conclude the deal. I always tell them to enter into a transaction where they will receive the signal to buy or sell. Of course, it is somewhat difficult process, because many people do not know how the signals appear. So it may need a small manual.
The purpose of the implementation of sets, where to buy or sell. A good model indicates that price through the resistance and support, recognition model and the ratio of reward to risk. Although several limitations affect the fulfillment. First, any external forces that could affect the possibility of trade, must also be considered before entering into transactions. Secondly, the objective will change dynamically as new data modify the model. It may be that a tick will affect the calculated ratio of return to risk and completely upset the initial parameters of the transaction.
The zone is located between the execution of the current price and to fulfill. This is the boundary of attention for your entry into the market. You are shifting the focus to the fulfillment, when the price penetrates through the zone implementation. So, where do you arrange this important milestone? Put it in the distance, which would allow time to check, enter, or not to enter the market when the price affects purpose.
Use common sense to determine the useful area of performance. See the recent volatility and to measure a fixed distance from the goal. Or to determine the location of the last level of support, through which your graphics model must pass before you reach the goal of performance and place the order at the entrance to this point.
You have three options for entry to most commercial models:
. Enter in the area of consolidation at the level of previous support for a breakthrough or resistance.
. Stay on the sidelines when the breakthrough happens and wait for rollback.
. Try to enter, when a breakthrough is just beginning, in the hope that included in the trend for a good price.
Each entry strategy in line with its own combination of the fulfillment and implementation of the zone. The key approach is the entrance to a long position of about a significant level of support or a short position on some significant level of resistance. Of course, it is heavier than it might sound. Emotions are rising on the moving market and the decisions we make in the heat of battle the market may not be best for this model. But this is part of
game called "trade".
Let's look at two examples.
"Genesis Microchip" (GNSS) had a "triple base" for sale. But bad timing empty trading account at this volatile instrument. Properly timing the sale will bring a good profit. Thus, when the right time to open a short position?
Price noted NR7 (a bar with a narrow range of the last seven bars) just before the fall in the middle of the 40th figure. That would be the perfect place to enter the market, but will need to monitor the signal just before closing, and then just enter. Trader can also sell the following morning, when the market made a tool GEO down, but in this case the position would be vulnerable in the event of a turn. Time for a third method has not yet come. Prices may still go back to the level of a breakthrough, and then an opportunity to enter the market with very low risk.
"Manhattan Associates" (MANH) also suggests an interesting possibility for sale, but the result was quite different. The price was nearly double unsuccessful grounds, but dropped its nightly news with GEPom up. Since the model is not launched, there was no risk option is composed of two or three for sale. But there was a risk if the short position was opened in the previous bar, in the area of consolidation at the base.
On a positive note, that this narrow zone caused the signal output as the only market-based instruments, made of GEO above it. And the opening position in this quiet zone would make the loss any more acceptable.
Trading patterns are projected prototypes, no more and no less. Some developing with textbook perfection, while others are not going to show any connection with the theory.
Good execution of trade - this is a three-stage process. You find a model, then see how price interacts with it, and then decide whether to actually trade on the model. Sufficient proportion of models have never reached the third stage - the moment of decision and must be rejected without much thought. Many traders have a problem with this limitation, because they expect that the markets can earn both at the races, through a simple strategy to choose and play. " In other words, they open position, just as a player puts on the horses. But markets do not work that way and opening positions can not be treated like the rates for racing.
When a new model, who is - I always wondered where they were "supposedly" conclude the deal. I always tell them to enter into a transaction where they will receive the signal to buy or sell. Of course, it is somewhat difficult process, because many people do not know how the signals appear. So it may need a small manual.
The purpose of the implementation of sets, where to buy or sell. A good model indicates that price through the resistance and support, recognition model and the ratio of reward to risk. Although several limitations affect the fulfillment. First, any external forces that could affect the possibility of trade, must also be considered before entering into transactions. Secondly, the objective will change dynamically as new data modify the model. It may be that a tick will affect the calculated ratio of return to risk and completely upset the initial parameters of the transaction.
The zone is located between the execution of the current price and to fulfill. This is the boundary of attention for your entry into the market. You are shifting the focus to the fulfillment, when the price penetrates through the zone implementation. So, where do you arrange this important milestone? Put it in the distance, which would allow time to check, enter, or not to enter the market when the price affects purpose.
Use common sense to determine the useful area of performance. See the recent volatility and to measure a fixed distance from the goal. Or to determine the location of the last level of support, through which your graphics model must pass before you reach the goal of performance and place the order at the entrance to this point.
You have three options for entry to most commercial models:
. Enter in the area of consolidation at the level of previous support for a breakthrough or resistance.
. Stay on the sidelines when the breakthrough happens and wait for rollback.
. Try to enter, when a breakthrough is just beginning, in the hope that included in the trend for a good price.
Each entry strategy in line with its own combination of the fulfillment and implementation of the zone. The key approach is the entrance to a long position of about a significant level of support or a short position on some significant level of resistance. Of course, it is heavier than it might sound. Emotions are rising on the moving market and the decisions we make in the heat of battle the market may not be best for this model. But this is part of
game called "trade".
Let's look at two examples.
"Genesis Microchip" (GNSS) had a "triple base" for sale. But bad timing empty trading account at this volatile instrument. Properly timing the sale will bring a good profit. Thus, when the right time to open a short position?Price noted NR7 (a bar with a narrow range of the last seven bars) just before the fall in the middle of the 40th figure. That would be the perfect place to enter the market, but will need to monitor the signal just before closing, and then just enter. Trader can also sell the following morning, when the market made a tool GEO down, but in this case the position would be vulnerable in the event of a turn. Time for a third method has not yet come. Prices may still go back to the level of a breakthrough, and then an opportunity to enter the market with very low risk.
"Manhattan Associates" (MANH) also suggests an interesting possibility for sale, but the result was quite different. The price was nearly double unsuccessful grounds, but dropped its nightly news with GEPom up. Since the model is not launched, there was no risk option is composed of two or three for sale. But there was a risk if the short position was opened in the previous bar, in the area of consolidation at the base.On a positive note, that this narrow zone caused the signal output as the only market-based instruments, made of GEO above it. And the opening position in this quiet zone would make the loss any more acceptable.
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