Good morning guys.Could not sleep and my mind is too active so decided to post this.
As you guys already probably guessed my system is good for both trend trading and range trading.Importance is understanding what cycle each pair is and trade it accordingly.
1st lets focus what typical issues are in tend trading.
The goal of trend trading is the same - join the move early and hold the position until the trend reverses. The basic mindset of trend trader is "I am right or I am out?" The implied bet all trend traders make is that price will continue in its present direction. If it doesn't there is little reason to hold onto the trade. Therefore, trend traders typically trade with tight stops and often make many attempts into the market in order to make the right entry.
1.Issue is tight stops
25-50pips stops most often get hit.Your broker's software is programed to hit them and market makers often spike prices to get their large orders filled hence this way of trading not only futile but soon you'll go broke.
2.Trends are great until they go into a range and price ranges more times then trends in fact roughly 70% times price ranges.
Again your stops will get hit when price goes into a range.
My system addresses these issues by having more logical stops that are wider and lots traded smaller hence you have a better chance of profiting.Trend trading can be combined with range trading which I do often and profit from both situations.
Range and why I love range.
Contrary what you have read in trading books range trading is where real money is.When 70% forex is in a range then it makes sense focusing on it.
When I identity a range I build stronger larger positions then otherwise.When I trade range most times I only trade in 1 direction only and that direction is towards larger trend or most likely break out direction so if break out does occur while you are trading range then you are good to hold and profit your range trades becoming trend trades.You don't want to trade range both direction because you might get run over should the price break out opposite direction of your trades.
Typical range AU my bias is to buy only when price is below 77 specially with volatile situation with Trump presidency.
Observant traders already noticed that when price ranges its often between 38S to 38R something to keep in mind.
NU ranging as well and my bias is buy specially at 72 strong support there.Notice how beautifully price reacted at key pivots
As you guys already probably guessed my system is good for both trend trading and range trading.Importance is understanding what cycle each pair is and trade it accordingly.
1st lets focus what typical issues are in tend trading.
The goal of trend trading is the same - join the move early and hold the position until the trend reverses. The basic mindset of trend trader is "I am right or I am out?" The implied bet all trend traders make is that price will continue in its present direction. If it doesn't there is little reason to hold onto the trade. Therefore, trend traders typically trade with tight stops and often make many attempts into the market in order to make the right entry.
1.Issue is tight stops
25-50pips stops most often get hit.Your broker's software is programed to hit them and market makers often spike prices to get their large orders filled hence this way of trading not only futile but soon you'll go broke.
2.Trends are great until they go into a range and price ranges more times then trends in fact roughly 70% times price ranges.
Again your stops will get hit when price goes into a range.
My system addresses these issues by having more logical stops that are wider and lots traded smaller hence you have a better chance of profiting.Trend trading can be combined with range trading which I do often and profit from both situations.
Range and why I love range.
Contrary what you have read in trading books range trading is where real money is.When 70% forex is in a range then it makes sense focusing on it.
When I identity a range I build stronger larger positions then otherwise.When I trade range most times I only trade in 1 direction only and that direction is towards larger trend or most likely break out direction so if break out does occur while you are trading range then you are good to hold and profit your range trades becoming trend trades.You don't want to trade range both direction because you might get run over should the price break out opposite direction of your trades.
Typical range AU my bias is to buy only when price is below 77 specially with volatile situation with Trump presidency.
Observant traders already noticed that when price ranges its often between 38S to 38R something to keep in mind.
NU ranging as well and my bias is buy specially at 72 strong support there.Notice how beautifully price reacted at key pivots
In trading, you have to be defensive and aggressive at the same time
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