The first key to become 120 pips on a single day is realizing that you might not be able to make 120 pips each day.
I know this seems obvious, but it is a very important concept to understand.
It is likely that if your project requires transactions to make a certain number of pips each day, you could find yourself forcing a trade when it really does not exist which could give rise to give back any previous winnings you've made.
It is best to start your trading day with an open mind and accept what the market never. This includes understanding that there are times when the market is in a consolidation; When this happens there will be fewer commercial opportunities which are successful. In unification of several commercial systems will generate an input, but they end up going nowhere and distribute you stopped it.
On the other hand, it is also important to identify when buying breaking of unification and there may be a trending day.
Trending days or breakouts of unification is usually due to the release of economic data. Sometimes even quotes from an employee of Fed or governmental organization might trick. whichever is probably the consolidation just before the outbreak is due to anticipation of news or an event that may cause a change in the valuation of a pair of currencies to sell.
These two concepts are very important and will make a big impact on your commercial success if you can understand them. These two concepts are also directly related to how often you will be able to make 120 pips on a single day. Thus, having a solid understanding of financial data and how does it affect the currency pair trade is vital to your success is also confirmed for many of the technical distribution you may find.
Now on the technical side.
It has been said that one of the easiest distribution for locating is a change of unification. This is most likely due to the tight range that can be easily identified on your charts. If an outbreak of integration results in a trending day, this could have the opportunity to make 120 pips on a single day.
(This of course would be easier if you are trading more than one currency pair)
The challenge with trading breakouts unification attempts to avoid false gestures, or head fakes, as are sometimes called.There are methods that can help you determine a possible head fake. one of the methods in my first year attending. If I see some indicators divergence between price and indicator, I usually will treat other plays integration with caution.
A very important tip that I think really can change your trading method for the better is something I learned very early on in my career I analyze transactions only closed candles.
For example, if you see price movement outside of unification will normally wait until the candle closes before make my decision to enter or to enter a trade.To import only if I have solid confirmation and a technical trade has developed before the outbreak of unification.
This principle of waiting for the wax to close before I analyze this is something that they asked me to my trading for many years with great success.Works independently what time frame you are trading with. Give a try and see how it works; you'll notice that if you try for a while, this can keep you from many bad decisions.
So far there are three basic concepts:
1. Learn to recognize the difference between consolidation and trending on the day.
2. Learn to identify discrepancies between prices and indices.
3. Wait for a candle to close before you make your analysis.
Now some technical details.
Use my original explanation of unification will probably be one of the easiest ways to explain this method consolidation for most people is one of the easiest price patterns to identify.But when the markets are quite choppy can cause very little confusion for the inexperienced.
Another tip that may help your negotiation is to get to know the range of normal consolidation for the currency pair you Most traders understand that ... each currency pair has a value different area I am referring to is normal or average high and low for the day over a given period.
For example, GBP/USD can move much farther than THE EUR/USD when it trending.
Exactly, when GBP/USD is within the range of unification, consolidation is usually slightly greater than EUR/USD.
You might want to take some time to do a little behind your Back test tests. favorite currency pair and identify ranges just before the great breakouts and trending days once you identified the extent of consolidation area high and low range What you are looking for several integration. back tests in order to create a range of average consolidation for the pair.
Having data region average consolidation will help you to confirm when you find a live market consolidation.
Thus the trade.
All of these tips might be useful, but what traders really need to know is where you can enter the trade.
It's like the old saying goes "knowledge is power, only dynamic is useless unless you apply this."
My favorite way to trade a break from the consolidation is to start by identifying market sentiment and quotable any financial information that may be released after import trade. I prefer to have financial information already released and distant trade before importing.
Wait for a candle to close off the region integration. Moreover, I can use my indicators for confirmation and you don't want to see any difference between the average values and the pointer to an outbreak.
Once I have a candle ended outside the region to confirm it is safe to enter but before I can put my business I need to specify a stop loss level; a typical stop loss level incorporates support or resistance; If you don't want to risk more than 40 or 50 pips as a stop loss level may need to be patient and allow price to move outside the range of integration and wait for a pullback. This pullback seen test of high or low range breakout of unification.
I once this pullback that appears to retest the spectrum release, then look for a candle pattern as an evening star or morning star depending on the direction of trade When I have this. pattern candle is my post regarding objectives will wait for Fibonacci extensions or support and resistance. I would also take professions have objectives equal to the level of loss my braking or double.
This method requires practice and patience. Many traders make very excited when value begins to escape ranges. often the jump within a very short and price drops back in the consolidation; waiting for the pullback and using the method described, I will have enough time to verify market sentiment, any news that has been released and I also minimize my level of loss of braking.
Thank you for reading and good luck trading.
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