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Let’s quickly review the basics of previous
chapters to make sure you understand basic trading skills and
their importance. After all, the S90/Crossovers are the
foundation of the extreme levels in a trading range. You should
have this general knowledge before proceeding; otherwise, you’ll
be confused as to how the markets work with the extreme levels
of the forex.
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TRADING RANGES
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Trading ranges may be found between a
resistance and a support on any time compression. Some
traders may even consider trading ranges as small as a
one-minute time compression if they are scalpers. Trading
ranges have been considered as stabilized areas of the
market; recently, however, more and more traders are
beginning to realize that trading ranges shift as market
conditions change. more
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EFFECTS OF OVERLAPPING
FIBONACCI LEVELS
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As trading ranges are formed, Fibonacci
levels may be measured. The center level is 50 or 50 percent
from the top high to the low of a range made up of bull and
bear candlesticks.
The other two important levels that most traders focus on
are the .382 and .618 levels.
more
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PLACING PROTECTIVE STOPS AND TRAILING STOPS
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According to every broker-dealer I have met, most traders do not
place protective stops
on their trades. They trade like gamblers trying to swing trade,
with hopes that a trade gone bad will eventually come home for a
profit. more
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