How to define an entry point in the market

How to define an entry point in the market

Experienced traders argue that it is more difficult to find - a point of entry or an exit. Interests beginners more how to define the first. Calculation of the correct moment for purchase is based on the technical analysis of the change in price, use of the economic calendar and the indicator.

Instruction

1. Find the effective indicator showing the trend movement most precisely. It is possible to use built in the terminal too, they are checked by time and their data are more exact. And here fletovy indicators have one essential shortcoming – they can significantly be late. And if to rely on their indicators, then it is possible hardly to manage to get to the middle of a trend and not to manage to leave in time the market.

2. You have the finger on the pulse of technical analytics. The technical analysis – the second component of calculation of an entry point in the market. Study reports which spread the electronic exchanges. In such reports the main recommendations to traders are usually made: what positions it makes sense to consider at present, where to have the level of stop and when to transfer stop loss to zero level when to open long and whether it should be taken into account warrants for sale. You have to possess obligatory a minimum of knowledge of main rules of trade therefore let the technical expertize and indicators will be only a basis on which you will build the system of trade.

3. The system of trade in a trend is less risky, than trade on breaks. Its strategy is simple: it is necessary to rise on the market in a short position at rise in the price and in long at its falling.

4. Small example: you decided to get up on the market in the conditions of the ascending trend. For its definition make sure that for today the price of closing of the high price of closing a few days ago. If you play within one day, then compare an indicator at the moment and several candles back.

5. Find small recession. The trend is stronger, the budutkolebaniye is more considerable. Small recession in a strong trend will be an ideal point for an entrance to the market on ascending. Having correctly seized this opportunity, you get the greatest profit at minimal risk of losses. At a game on descending it is necessary to work on the contrary.

Author: «MirrorInfo» Dream Team


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