The technique I will describe to you today is a technique with a deadline of 10-15-20 minutes that uses a few simple but effective indicators.
The Timeframe used for this technique will be 10 minutes.
It is necessary to invest when the Bollinger Bands are sufficiently wide or a breakout is about to take place following a lateral phase.
The signals of market entry will be given to us by the Derivative Oscillator indicator.
When there is a cross between the green line and the central one, we will have a signal of market entry.
In the first case we have a breakout with enlargement of the Band. The Adx signals late market entry but the Derivative Oscillator is more precise.
So you should always follow the Derivative Oscillator except when we are in the lateral phase, many times the Adx marks a delay compared to the Derivative but other times its rise coincides perfectly with the intersection.
In the second case we have a bullish trend in the 3 and 4 a bearish, after begins a lateral phase because the candles are arranged horizontally and so it is better not to invest.
There are many favorable signs in the morning from 9 to 11.30, I recommend these times to try the technique.
The expiration time can range from 10 to 20 minutes is this technique is especially effective in moments of breakout. There are many investment opportunities in a day but a good trader must always know how to avoid false signals as in all techniques, so invest intelligently and sparingly.
Price breaks (as breakouts translate into Italian) are a forex strategy used to set up directional trades. Although it is considered a technique that can lead to concrete satisfactions, it needs (like everything else in this world) training and application.
A price break occurs when a currency cross exceeds (upwards or downwards) difficult price levels (which in technical jargon are called resistances). When a similar event occurs, volatility increases; it is therefore possible to record upward or downward trades, setting the break line as the stop loss.
What is the downside of this forex strategy? Of course, the risk, if we do not analyse the market carefully, is that we will be deceived by false signals. Since Forex also experiences ambiguous moments, it is advisable to use this technique with the utmost caution. For example, we could be the victims of a bullish trap, a mechanism that would have the effect of setting unfounded orders. Even if we act now, we would still encounter expensive techniques, especially in relation to the lost spread fee. What we suggest is to analyze the price breakouts considering also the price patterns of Japanese candles.
To avoid taking risks, technical analysis must be accompanied by a fundamental analysis to anticipate the evolution of currency crosses. What the fundamental analysis does is to catalogue in detail a whole series of economic, political and social details of a nation; after having dissected them, it rightly considers them as firm points around which and with which the market will sooner or later be called to confront itself. It is obvious that forex traders are necessarily called to know how to relate to these data to predict certain future situations.
o GDP is the total value of products and services that are "produced" by a single country. It should be noted that, to calculate this value, players resident and not resident in Italy are taken into consideration (usually, to define the value, a time span of twelve months is considered). Production intended for intermediate consumption shall not be considered.
It is of fundamental importance to be able to analyze and know the possible explosions of volatility in Forex; all this to anticipate the changes of direction and to set up winning strategies. This type of analysis gives us an indication that there are more favorable times to open trades in forex (which is open 24 hours a day). Volatility is characterized according to the various trading sessions; in this case it is possible to identify the openings of:
It should be noted, therefore, that the openings and closures of markets are excellent moments for setting up directional trading strategies, precisely because they are characterized by a certain volatility.
The Relative Strength Index (RSI) is widely used by analysts who want to invest in trading, especially those who trade in Forex, the futures market and stock markets. Please note that this article can be converted into PDF and used as a practical eBook. After having carefully verified its application with Bollinger Bands, we see its functioning in other contexts as well.
Do you want to embrace the scalping strategy to earn money in the online trading market? First, you will need a brief "summary" of how this technique works, and then, thanks to our advice, you will learn more about the most interesting maneuvers that over the years have allowed many successful traders to earn quickly.
We have seen how, in the field of technical analysis, it is also necessary to consider in depth the psychological aspect that in fact can influence the market even in a more than decisive way.
Continue our journey around some of the best known advanced trading strategies. In this case, we will analyze Bull Spread, a technique that is usually used if you have the feeling that the market is taking on bullish traits.