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"Remember: Cavorite is done this way...." (The City Of Wells. The first people on the moon)
So, from the very beginning.
Traders are divided into intuitive trading and system specialists (trading in strict TS – trading systems).
In the long term, the chances of surviving in the market are much higher for the system operator.
The system specialist needs a vehicle. What is a vehicle? In its most general form, a rigid set of rules defining: a) an asset (on which we trade); b) trading idea – a type of system; c) timeframe; d) signals/entry points; e) exit points from the market; e) capital management.
A simple vehicle contains entry signals – exit points – money management.
However, in the conditions of a long trading period (10 years or more), a simple vehicle will almost inevitably encounter such an unfavorable state of the market that the most sophisticated and ultra-cautious capital management will not save from significant difficulties.
The solution?
A more complex, more intelligent system is a two-tier one.
Higher level – determining the state of the market (higher time frames)
Lower level – the system of drawing the current state of the market.
Ideally, the system trader has a proven system of drawing both the trend and the range.
EURUSD: current market condition: range.
How to identify?
See the chart above (weekly chart).
We have fully formed not broken (!) Fractal levels up (1.1180) and down (1.0880).
Thus, this range is 1.0880 – 1.1180.
Draw options: range – purchases below the middle, that is, below 1.1030 with reopening if the price goes below or sales above 1.1030 similarly.
In the case of a break above 1.1180 / below 1.0880 – and closing the day outside the range – take the stops on positions to return to the range and start to play the trend.
To be continued.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
