FXPRIMUS · Bailiway - Five Opportunities for You t
  Source:FXPRIMUS 2023-02-15 16:35:01
Description:

There are some trading days in the foreign exchange market with obvious characteristics, which clearly indicate the true intentions of the current market. Seizing trading opportunities with a high probability of winning is of great help to profitability. There are five easy opportunities:


Strong trend trading day: From opening to closing, the market is controlled by unilateral forces, and the exchange rate moves in one direction. This is an excellent opportunity to take advantage of the situation and build a position, while only taking small risks. Because the value range on the next trading day will usually continue, it can ensure a profit exit within sufficient time without suffering losses.


High/low closing balance market: The day is a fluctuating balance market, but the closing high (or low) indicates that one party has achieved a hypothetical victory. So early trading on the next trading day usually favors the closing end. Therefore, building a position in line with the closing direction can be considered a good move.


Breaking through the consolidation zone: When the consolidation zone that has been maintained for a period of time is broken, the exchange rate movement will be rapid and intense. This is due to the change in market participants' views on value and the confident intervention of long-term forces. At this point, it is important to follow the breakthrough direction and enter the market in a timely manner to enjoy the pleasure of sitting in a sedan chair.


Breaking through the failure trap: When the exchange rate fails to hit the resistance level (or support level), it usually fully returns to the original value range. The longer the time period of the reference point being hit, the wider the return range, which is due to the concept of market equilibrium. At this point, it is necessary to react quickly and turn the gun head to strike back.


Jump gap: During the opening stage, due to the strong entry of long-term forces, a gap was formed. Its characteristic is to act as a support or resistance. Building positions along the direction of the jump also has a high winning rate. However, since there are several types of gaps, such as ordinary, breakthrough, relay, and depleted, it is best to distinguish them based on the overall environment before taking action.