Trading Tactics Or Forex Scams: “surfing Tactics” Part 2
Now I will explain and specify each position:
The position is closed immediately when the signal, on which the position opened, was cancelled, or replaced with the opposite.
Certainly, we here understand various combinations of the schedule of the price and tools of the technical analysis as signals. About the concrete signals applied in given tactics, we will mention later, here I want to specify some characteristics of signals.
Let’s use concepts incomplete – a complete signal, unconfirmed – the confirmed signal. In what is a difference? I will result a simple example: one of well-known signals to position opening is crossing by average. Thus it is considered that a signal finished when the time frame (bar) is closed after crossing above or below the price. However the passing on the schedule shows that such signal hopelessly lags behind, and to open the position it is already late. Therefore the trader is forced to act slightly earlier, before bar end and when there is a crossing by average. It is an incomplete signal. Whether it is necessary to use such signals? Yes it is, differently the trader will open late, inattentively more often.
Let’s assume, the price has crossed average from below upwards, having given an incomplete signal on purchasing, and trader has opened a position. When the bar will be closed above the price – the signal will prove to be true. Now it is the confirmed signal.
Some signals are a combination of several tools, and they strengthen or weaken a signal. But it can appear that the bar has returned under average, and was closed there. Thus, the signal hasn’t proved to be true, and in conformity to the above-stated rule, it is necessary to close a position immediately. Also incomplete signal is formed, if is used in a combination with other strong signals which have suddenly shown opposite result (for example MACD has moved downwards). (At once I will note – tactics “surfing” doesn’t use these signals, it simple example).
The position is closed immediately at achievement of the levels which overcoming is a signal of a turn of movement. The position turn in the opposite direction is thus possible.
I am convinced that in any tactics, except specific signals, it follows to use significant levels. Levels of placing of mass stops are especially important. How them to learn? In the first, it is necessary to read news lines, there always these levels are specified, and is exact enough. The second, simply look at the schedule, and present, where you would put stops. I am assured, you will put them there where put the majority of traders. And so, at crossing of these levels occurs or a rebound of movement, especially correctional movement, or breakdown that occurs often at movement on a trend. Thus there is sharp enough change of the price. It is possible and it is necessary to use for profit earning, tactics working on are based on it “volatility breakdown”. “Surfing” isn’t such tactics, but at approach to such level it is necessary to be extremely careful and to act resolutely hardly before breakdown, and then it will be late.
Because of hard times in the economies of many countries Forex is a very popular way of earning money. Those who are searching for productive strategy, might be interested in managed forex accounts. But please make sure to read about forex trading scams before going into forex trading.
It is obligatory to read unbiased reviews to answer a question “is forex a scam?” before you invest money into trading activity. This is important, don’t forget that we are living in the world where information quickly enhances the quality of our life.
Due to this if you are properly armed with the information in your topic you can rest assured that you will in any case find the way out from any bad situation. So, please make sure to track this web site on a regular basis or – the easiest way to take care of it – sign up to its RSS. In such an easy way you will have a direct shortcut to the latest info updates here. Blogs can be helpful, you just need to know how to use blogging for the currency exchange market.