Many traders like to buy dips to support or sell resistance, but it just ensures that they will lose.
These tips for trading FOREX – is the use of leading indicators to confirm the move, and not merely the opinion that the support and resistance will occur.
Let's look at this in more detail.
Buying at support and sell at resistance.
All the time you hear this advice, but it does not make money.
It is based on the old adage "buy low sell" is another phrase that will not make you money.
If you buy support or sell resistance, the logic is that you will have a low risk and high reward, if the levels will hold.
The important word here & # 39 is the "if"
If you trade the FOREX, you do not want to rely on the "if" and hope – you want to index increased chance of carrying these levels and your chances to profit.
If the price approaches support or resistance, it will break as often as you want, so you need to monitor the price changes of momentum, and it is here that may help leading indicators.
Getting the odds in your favor
If you want to buy support and sell resistance and get the odds in your favor, try these tips FOREX.
You can use lagging indicators, as well as the trend line in currency trading to indicate areas of support and resistance, and those that we like, with & # 39 are:
Bollinger bands and moving averages.
Indicators such as the trend line should not be used for entering transactions.
Buying dips to support or sell resistance, you want to confirm that the levels will be held – before prices reach these levels, you want to advance to confirm rotation.
If the price exceeds the momentum of support or below resistance, you can enter with increasing the chances of success.
The best indicator of time for today – stohastychny.
See and learn about it as this great tool is used.
Another excellent indicator to & # 39 is the relative strength index RSI.
Combine the two and make sure confirmation of both of them, and you have a powerful combination, which you can use to increase your chances of success.
They will advance warning of price change of momentum with the support and resistance, and if they turn in your favor, you will be able to enter the trade.
You did not predict higher.
You act on confirmation, and this will greatly increase the chances of your favor and increase your overall profitability.
FOREX This advice is obvious, but it is surprising that many traders simply rely on the level, but do not look for confirmation
Do not make the same mistake when ever trading FOREX.