First things first. You turn on your computer, open your trading platform and graphics, and you are trading Forex.
This article aims to teach you how to build a method of forex trading.
First things first. You turn on your computer, open your trading platform and graphics, and you are trading Forex. How?
For example the most interesting of the forex trading very short term (you retain the positions a few hours maximum).
1) Select its graphics.
For forex trading very short term, we will take three graphs. The graph in 5 minutes (each candle is 5 minutes), the chart in 15 min, and the chart in 60 minutes.
2) Point the support and resistance.
On each of the three forex charts, we will point the supports and resistances most important. Supports the most important will be those that can be identified on the chart in 60 minutes.
The supports and resistances plotted on graphs 5 and 15 minutes will be considered as useful intermediates support and resistance, but of lesser importance.
3) Identify the trend
It will then identify the general trend on the forex chart long-term and intermediate trends on graphs 5 and 15 minutes.
Care should be taken to always be positioned in the direction of the long-term trend. For example, if the trend is upward on the chart in 60 minutes, and the trend is downward on the graph in 5 minutes, it is better to wait for the turnaround to higher than trying to take the train from the down on.
4) Identify the signals
For this critical step, it will be necessary to use several different tools to confirm the signals between them. Therefore be given to the importance of moving averages to cross long and short, to the outputs of triangles, with breaks of support, resistance and trend lines, and the appearance of trading channels, and finally to your own personal intuition.
Indeed, all the tools we have provided will never replace the experience. They will serve as a first step in forging the experience necessary, and will then support it once it is acquired.
5) Set stops and limits its
The last step is to set your stops and limits. Please remember are the two main rules: Stops must be narrower than the limits, and your investment horizon, the wider your stop and your limits to be detailed.