Daily average trade eur-usd
Under daily average trade usually consider the transactions made in a time interval from one day about several weeks. Possibility of daily average trade it is caused by “good memory” market, i.e. occurrence of psychological levels of support and resistance which can exist long enough. These are statements became basic for occurrence of “channel” trading strategy which perfectly works on currency pair EUR/USD with forex broker. Its essence consists in the following: market movement in the intermediate term period forms support and resistance levels. They are well visible on four-hour and eight-hour schedules. To buy given currency pair follows after “reflexion” from resistance level. Reflexion looks as follows: the price closely approaches to level and then starts to move to an opposite side. To sell EUR/USD on forex trading it is necessary after reflexion from resistance level. Now we will stipulate such aspects of the given trading strategy as “take-profit” and “stop-loss”. To fix profit costs at level of 15-19 points from support or resistance level, depending on transaction type. “Stop-loss” to be put on 50 items below support level (the transaction bay) or on 50 above resistance level (the transaction sell). It is necessary to notice what to buy before reflexion from level of support or to sell to level of reflexion from resistance level very dangerously. There is no guarantee that the channel will continue the existence, instead of will be punched by the price. The error of the given plan is the most widespread among traders форекс which only learn work elements in the channel. But except the technical analysis at use of the given strategy it is not necessary to forget about fundamental news. News are capable both to accelerate price movement in the channel, and to force the price to punch it. What news should give particular attention at trade EUR/USD on forex market.
1. Economic events in the Eurozone. Germany, Italy, France, Spain, Belgium, the Netherlands, Austria, Portugal, Finland, Ireland, Luxembourg and Greece concern the Eurozone countries. The major economic news are disclosed at session ECB – the European Central Bank. 2. Economic events in the USA. The major news leave after session ФРС – federal reserve system. 3. Political stability in the USA and the Eurozone. 4. The information on acts of nature, acts of terrorism. But except direct an exit of news break through the channel approach of news can. Because of рефлективности the market only one reception of a signal about possible movement of the price is capable to punch the channel that in turn is the major signal for occurrence in the transaction for many traders. It turns out that only one hearings are capable to punch the channel. If they appear authentic – the price “will a little move” in the same direction. Otherwise, there is a sharp movement in an opposite side, but, nevertheless, the channel ceases to exist. Average positions are good for traders who prefer average profitableness, together with average risk. Daily average trading strategy approaches only in the event that the trader has a possibility to hold the transaction within several days.