Post by account_disabled on Mar 9, 2024 21:28:19 GMT -6
We study the characteristics of the trading system Before deciding to conclude a transaction, it is necessary to analyze the market situation and obtain a signal from the instruments available in your arsenal. In this case, novice traders may have problems with the selection of the time interval. For example, if a person has decided to work exclusively with 4-hour charts, but accidentally discovered a familiar pattern on the 1-hour time frame, it is tempting to shift his focus to the chosen trading strategy. To avoid this, the two-screen system can be used . It allows you not to switch to other time intervals to find the best transaction (which in many cases it is not) and at the same time organize the decision-making process.
In one of the previous articles we have studied the Mexico Mobile Number List methodologies for analyzing the market situation through indicators, which would allow the trader to negotiate in the most comfortable conditions for him. A daily time frame was used as a basis. We will save it as the first screen of our trading system and call it " analytical ".The main task of applying the analytical screen is to understand in what market conditions we are going to operate. For this, the 14-day ADX indicator is the most suitable. Its growth from 25 in the direction of 40 and more indicates a constant trend. The 40-50 area is considered critical, when it is reached, reversals or deep corrections often occur. Therefore, on the daily chart of EUR/USD the ADX rally within the required parameters took place in January and May 2018.
At the same time, at the beginning of the year in the market the “bulls” dictated their conditions, among them all, the “bears” took the initiative. Working with an analytical screen on the EUR/USD chart LiteFinance: We carry out market analysis and look for the optimal entry point to the position | Litefinance After the trader has found a suitable currency pair by examining the analysis screen, he or she moves to the shorter time frame. We will call it "work", because this is where the search for the optimal point to enter the transaction and other attributes of the trading system will be carried out. The one-hour timeframe and the 1-2-3 pattern act as assistants . This is a reversal model, but