How do you Participate in Forex?
There are FOUR ways to play a market:
- Follow a Trend
- Reversal from the Trend
- Breakout / Breakdown
- Follow a Range
If you want to break these down further, there are TWO ways to enter a trade:
- Breakout / Breakdown (of trendline)
- Bounces off Support & Resistance
Have these in mind when contemplating your trade:
- What time of day is it? (eg. what market session is it still in, is it close to a market
open/close?)
- What type of day of is it? (eg. is it a holiday?)
- Is the market showing signs of reversing?
- Is the present trend continuing?
- Is price ranging?
- Is a breakout / breakdown looming?
Analyse the market in front of you by using your technical tools. Your analysis forms the basis
of your trade set-ups or strategies. You open a position if you see a trade set-up (it can be a favorite set-up
that often gives you winning trades), and it is at an appropriate time (say, the Euro market has opened some
minutes ago). More on strategies as you read on.
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