Forex Trading: In Search Of Days Of A Trend (strategy And Methods) Part 1
That day during which time there is an expansion of a daily trading range, and the opening/closing prices place on the various ends of the given range, adjoining near to the greatest and small significances for trading days is called as day of a trend.
During first 30 minutes of the auctions price range no more than 10 % from total for all day. Thus recoils of indicators of quotations within days (business day) are insignificant. Trend day occurs during significant rupture of the prices during opening which create deficiency of purchase. In this case the market opens and closed on extreme significances of the prices.
In a current of all trend day of the price reach all new and new peak figures / the minimum. In the end of day increases volatility that is one of prominent features of trend days. It can be directed as in a direction to the basic trend on day schedules, and against it. In trend bottom the main thing is that growth of a trading range and difference increase between minima and maxima gives certain possibility in extraction of profit a small space of time.
Even if the trader works only on scalping intraday, he should know properties of trend day. If the trader notices trend day he should refuse the analysis resale/re buy, levels of support/resistance and to pass to use of a technique of breaks, being thus attentive to purchase during new maxima and on the contrary to sell during new minima.
Here only if the trader loses the control over a situation it can incur the maximum losses if will purchase during a new maximum and to sell during a new minimum. As recoils in a current of day happen rare enough and very small at first sight losses, it can turn to the huge. Attempt of averaging of unprofitable trends in frameworks of trend day can be the worst variant in this case.
But to advance those conditions which can indicate to us on approaching trend day, quite probably. It without problems can be made at once after hours of auctions. The trader in this case needs to prepare the plan for the business day. Also it is required to advance stop-short and warrant stop-long on those or other levels.
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