Market sentiment index


Dream intraday-Trader

The use of technical analysis methods in the FOREX market has its essential features. At normal size deposits accessible ordinary trader can only trade on the intraday time frames (intraday trading). Zanyt strategic position by buying currency at the beginning of a long uptrend, and then within a few weeks, or even months to see how profits increase - a dream of every currency speculator. But for intraday-Trader is an unattainable dream.

A simple analysis of the daily charts of major currencies shows that if you do not dream of the gift of fate, and to rely on the actual behavior of markets, after the opening of a position to be ready to survive quietly rolled back the size of two or three figures, if not more so. For daily schedules are natural scale moves. But most traders avoid the possibility of potential losses of 2-3 figures is tantamount to not put protective orders (stop-loss) at all. And what ends up trade without protective orders, is well known to anyone who has tried to do this. The rest of it is better not to try.

Space, we place the fate of the currency market is on the hourly charts. Here it is possible to find reliable guidelines for open positions (support and resistance levels, trend lines), at which the market will show protective orders reasonable sizes (50-60 points), it is appropriate for the average trader acceptable risk. But by itself the behavior of hourly charts are not easy work relationship in time amplitude fluctuations in the price and size of moves trend is that most of the time the market spends in a sideways motion. Turning points in the graphs occur frequently, but not every one is the beginning of a new trend, and by the time there is no doubt that the trend has formed, this trend is coming to an overflow and attempt to catch the trend ends stop-loss- ohms.

In the literature on technical analysis published so many different trading systems and a variety of approaches to their construction and analysis. But characterized by the fact that almost all the authors demonstrate the effectiveness of their concepts on the material day (or on a larger scale) graphs. Attempts to apply the same approach to hourly charts FOREX market immediately lead to loss of credibility in the results obtained. Although the basic principles of technical analysis are the same for all markets at all time intervals, but automatic transfer methods reliably working on the daily charts, the intraday trading does not work. Perhaps there needs its approaches.

My trading experience shows that try to capture the strategic position it is necessary not by scheduling admissibility big rollback, but by early afternoon in the opening position in the hourly chart. In intraday trading price change in the 200-300 points - is not rolled back, it is a very solid move that we should strive to take in the form of profit, not suffer as a rollback. Any position should be opened in accordance with the scale in daily trade, including a position which the trader hopes to keep as strategic in a few weeks, should have a protective order in 50-60 points, not size 2-3 figure.