Trading tactics in currency trading
For the first time having familiarized themselves with currency trading, beginning traders often immediately begin to conquer trading peaks. Moreover, this process is chaotic and, as a rule, not for long. Already on the next deals, the first joy changes with a bitter disappointment from the merged deposit. At such moments on some descend the darkest thoughts, and there is uncertainty about the likelihood of profit in the forex market. But the one who is determined to overcome the first setbacks, incidentally, almost all of them, begin to look for ways to solve the failed transactions. And the first thing they manage to learn is an indispensable condition for owning trading tactics.
Tactics – the key to success
Trading tactics forex is a set of measures aimed at achieving the goal. This requires a certain sequence of actions and the definition of intermediate goals. To understand in more detail what trade tactics are, you can consider a classic example of a trader’s actions. First of all, it is necessary to determine the direction of the trend.
The intermediate goal in this case can be the study of the general trend displayed in larger timeframes. Then follows the identification of the strength of the trend and the identification of resistance levels. So, gradually performing the whole complex of actions, it is possible to achieve a certain result, which is the main goal of the trader.
It is very important that the forex trading strategy fully complies with the trading strategy. In the classical management of currency trading, it is common to distinguish three basic models of trading tactics. Each of them deserves attention and is quite effective in practical trading in the forex market. Some traders combine all three tactics for greater success, which is the guarantor of a more profitable trade.
Channel trading tactics
This is one of the most simple and at the same time – quite effective tactical techniques. The essence of the tactics of trading in the channel is to determine the range of price fluctuations, limited by two lines. Such lines are marked on the price chart for the highs and lows of price marks. As a rule, the most suitable for these purposes is the schedule of bars or Japanese candles. In the case of a linear graph, the parameters will be averaged and will not give an objective picture.
The principle of trading in the channel is determined by the trend direction of the trend relative to the lines conducted. The entry point to the market is determined at the lights-out point and, accordingly, – the trend reversal, or in the case of a further trend – at the point of breakdown of the support line or resistance line. To obtain more reliable data on the further movement of the trend, it is recommended to use additional technical analysis tools in channel tactics. Very good at testing such analysis tools as Stochastic, RSI. Crossing the histogram of the comfort zone indicator indicates a trend reversal. To be more certain, you can use ADX signals to show the strength of the current trend and the volatility of the currency pair.
Tactics of trading on the economic calendar
This trading tactic forex provides for the use of fundamental knowledge, since it is about economic indicators.
However, even in the absence of a special education, it is not difficult to deal with the subtleties of this tactic. Its principle is based on a timely response to current events. First of all, it is required to get acquainted with the publication of news, which are published in the near future. Typically, the publication of news reports indicate the time of the news and its actual output. It is at this time that you can safely open an order in the direction of the trend formed after the news release. However, here you need to keep in mind some of the nuances. For example, in each calendar it is customary to note the economic importance of news. And an economic event of small importance relating to one state, as a rule, does not have a significant impact on the forex market. But the news with a note about the great impact of the news can help reverse the trend, even in large time intervals. And just during the promulgation of the implementation of the forecasts, which are the consequence of the news event, it is necessary to consider the direction of the trend and join the trade in time.
It is not a bad idea to use this indicator in combination with the indicators and pay attention to the color of Japanese candles.
Trendy tactics of trade
This is one of the most popular trading tactics. Its meaning lies in the unswerving following of the trend. At the slightest change in the direction of the transaction, either the hedging of positions is turned off or applied. It is appropriate to use analytics built on signals from technical indicators and on graphic instruments. This allows you to determine in time possible resistance levels and trend reversals. In this case, it is advisable to use wave analysis, Fibonacci tools and other possibilities. In each individual case, the trader independently selects tools for using tactics on the trend. An important analytical tool in this tactic is the analysis of Japanese candles.