Hi, I am studying for an exam that is FX related.
Is anyone able to answer this question, and explain the answer?
"Using technical analysis, what is the best approach to trading a box formation?"
1) Buy when the trade price reaches the bottom of the box and sell when the price reaches the top
2) Wait for the price to break out of the box formation and trade as appropriate
3) Both of the above
4) Trade a ratio spread.
I would say that the correct answer is #3.....but I don't know what is meant by #4.
Is anyone able to answer this question, and explain the answer?
"Using technical analysis, what is the best approach to trading a box formation?"
1) Buy when the trade price reaches the bottom of the box and sell when the price reaches the top
2) Wait for the price to break out of the box formation and trade as appropriate
3) Both of the above
4) Trade a ratio spread.
I would say that the correct answer is #3.....but I don't know what is meant by #4.