 Free Online Articles Directory |
|||||||
Home Page  Finance Day Trading What You Need to Start Trading |
|||||||
 |
What You Need to Start Trading
What you Need to Start Trading.
This particular technique has been around for a long time and I first saw it used in the futures market. Since then I have seen traders using it on just about every market and when applied well, can give amazingly accurate entry levels. Lets first start with the basic concept. During the course of any trend, either up or down, the market will form little peaks and valleys. see the chart below: The problem is, how do you know when to enter the market and where do you get out. This is where the 1-2-3 method comes in. First let's look at a typical 1-2-3 set up: Nice and simple, but it still doesn't tell us if we should take the trade. For this we add an indictor. You could use just about any indictor with this method but my preferred indictor is MACD with the standard settings of 12,26,9. With the indictor added, it now looks like this: Now here is where it gets interesting. The rules for the trade are as follows: Uptrend This works best as a reversal pattern so identify a previous downtrend. Wait for the MACD to signal a buy and for the 1-2-3 set up to be in place. As the market pulls back to point 3, the MACD should remain in buy mode or just slightly dip into sell. Place a buy entry order 1 pip above point 2 Place a stop loss order 1 pip below point 3 Measure the distance between point 2 and 3 and project that forward for your exit. Point 2, should not be lower than point 1 The reverse is true for short trades. As the market progresses you can trail your stop to 1 pip below the most recent low (Valley in an uptrend). You can also use a break in a trend line as an exit. Some examples: There are a lot of variations on the 1-2-3 setup but the basic concept is always the same. Try experimenting with it on your favorite time frame. Good Trading RELATED LINKS
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Tags: FOREX, Day Trading, Currency, Work At Home Job, Currency Trade Article Source: http://www.articlesbase.com/day-trading-articles/what-you-need-to-start-trading-494169.html About the Author:
Related ArticlesMy Favorite Trading Strategy Trading Psychology - Doubt Price Analysis - A Top-Down Approach Day Trading – the Best Way to Make Huge Profits is Forex Seminars In Todays Market Risk Management and Portfolio Optimization Forex Training For You: The Cost The Wealthy Trader's Guide to Consistently Profitable Trading Got a Question? Ask.Ask the community a question about this article:Frequently Asked Questions My school has a surplus of my pal grant money left ... Lost income Could you recommend me about a good place to work ... Vardon Family Status? The child is in youth offenders prison do you ... Wholesaler for baby phat and coogi (shoes and clothing) Q&A Powered by:
 Latest Day Trading ArticlesCurrency Day Trading - Why Currency Day Traders Lose and a Better Way to Trade How Can Online Trading Strategies Help? Online Trading Strategies: Make Trading Business a Success Day Trading Strategies Why Do We Need Trading Message Boards Best Stock Trading-recommend Stock From the Stock Robot Give Your the Best Stock Trading Stock Trading System-stock Guru Sharing His Stock Secrets!!! Are You Wondering How to Start Investing in a Stock Market? More from tundeForex Buy and Sell Indicator How to Choose a Trading Platform What is Forex All About? |
|
|||||
|
Article Categories
 |
|||||||
 Sign up for our email newsletterReceive updates, enter your email below
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.16, 17) |
|||||||
