Trading Techniques
Hey guys,
With all the threads on all the different forums going on, i noticed how no one talks about the techniques they use to determine when they place a trade. So to help everyone out I thought its a good idea to have a thread where we can discuss what our favourite trading techniques, (and i know its our bread and butter when trading so dont share allyour techniques, mabe just your top 1 or two).
PS. when i say technique i dont mean how you physically look at the market as shown in the image:P
Like most traders I like to trend trade, however what about when a trend has been going on for a while and you suspect will be ending soon?
This is where i like to counter trend trade and i want to share how i determine when i think a trend is about to finish. First I determine the major support and resistant levels on the instrument with horizontal trend lines (or fibonacci Retracement if available).
Secondly once the instruments value has broken through the last low/high point as EUR/CAD has recently done (as shown in image) with long candles and rare drawbacks I will assume the trend is almost played out (so long as this assumption is supported by other indicators).
Third step I will open a modest position with modest S/l and T/P to test the theory. Now even if I' am wrong about a NEW trend I still have a chance at profiting due to no recent drawbacks of the current trend having taken place, and should i be correct I will also profit and will place a follow up larger position.
The image below Shows an example, with the yellow line indicating where the position was opened and a green line showing the initial T/P
Hope this helps, tell me if you agree of disagree with my methods and share your own!
(Dont make this one of those threads with 100 views and only 1 reply guys! Exchange your trading opinions and help newbies get into trading!)
