Profit is, without any doubt, the ultimate motivation for all trading activity. And it makes total sense to want to preserve a larger portion of your gains, instead of continuously exposing them to risk. But there are both right and wrong moments to lock in your profits, which makes us wonder: when to lock profits? When the trade has been going well, the question that might come to mind is: should you lock in some profits? But the answer isn’t always single-layered. Locking profits means closing a position partially or fully, when it...
If you are familiar with the concept of false breakouts, you might say it sounds illogical to try and benefit from them. But we have already discussed it many times before: any scenario on Forex can be turned around to your benefit. So, today we discuss how to trade breakouts in Forex in general and a false breakout Forex trading strategy. How to Trade Breakouts in Forex Let’s start from the beginning. A breakout on Forex is defined by a price jumping out from the established range, this is either going beyond resistance or below...
A gap on the chart looks a lot like a skipped heartbeat, which it kind of is. However, in reality it isn’t as bad as it might sound. In fact, a fair share of trading strategies are built on the idea of gapping. Today we are going to discover the nature of market gaps and find out how to trade gaps successfully. How to Find a Gap in Trading Prices First things first, how do the gaps occur? Depending on the market, gaps might form at different frequencies with different levels of severity. On Forex, gaps don’t take place as...
Professional traders know that there are a lot of factors to consider when it comes to building a thorough trading strategy. One of these factors is the degree of correlation between various currencies. Today we are looking into some of the most popular currency pair correlation trading strategies and how to effectively apply them. Currency Pairs Correlation Meaning For a beginner trader it may seem like all currencies of the world are going their own way. Because simple logic suggests that if all pairs moved alike, their values are...
Correlation of currency pairs can play a great role in building an effective strategy. Traditionally traders look to double their profits by operating with strongly correlated pairs. However, the non correlated Forex pairs that move in complete disagreement with each other are also worthy of your consideration. Here’s why. From the term “correlation” itself, we easily conclude that pairs that correlate are the ones that move in tandem, by sort of mimicking each other. And non correlated Forex pairs explained are...
