Mar 9 2010
When the Stock market is without trend look for Forex Trading in a Box with a robot.
There are many ways to
Forex trading. One thing I can say for sure about the markets is that they never move straight up or straight down continuously. Prices can definitely increase for a long time, but sooner or later they would have to rest and consolidate. Sometimes it will even come back down to earth and reverse all of those striking gains. Just as runners can sprint for only a limited amount of time before they have to pause. The price can move only so far before it needs to pause. Afterward it can build up its strength for the next major run.
This function is a reason I enjoy a special play in Forex trading.It's called Box plays. This tactic is used in situations in which the market is taking a break before getting ready for its next major thrust. It can either be the next spurt higher or the next spurt lower. The favorite markets in which to trade this deal are the Forex markets.
Which currency pair is the most interesting to Forex trading?
The most popular currency to trade is the Euro. What I mean is the Euro/Dollar currency cross. This is the actual currency you get handed out when you go to Europe and change US dollars for EUR. On the Chicago Mercantile Exchange it is the symbol EC. In the Forex markets it is called the euro/dollar cross, symbol EUR/USD.
How do I find these Box plays?
I'm looking for a period of horizontal consolidation with at least two tests of the highs and two tests of the lows. When you get these two contacts, I am looking to buy a break out of the box, or sell a break out of the channel. My target on these trades is the width of the box. The trade can be done on all time frames . An individual who is primarily a day trader can execute this set up utilizing 1-,2-,3-,5- even 15 minutes charts. A person that also likes to swing trade can handle these setups on a 60-minute, 120-minute chart or even longer.
With Forex trading you can even trade both swing and intra-day trades. That means you can have a 60 minute box-play going on with one set of parameters, and 5 minute box play going on with a totally different set of parameters. These box-plays can be set up any time in the Forex market as it is actively trading all day. Just remember that there are several major openings each day. Asia, Europe,USA and other markets, all open around 8:00 a.m. in their local time.
There are no bells or anything that rings any more. Once the traders get to their office and reach their desks, they begin placing orders for their clients. That's why these consolidation patterns are inclined to break quickly. Once they do, they develop a trend really well, and you can rep your big profits with
Forex trading robot .
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