It's no secret that doing business within the day is the most common and accessible type of trading. Intraday trading or intraday refers to short-term trading and most traders prefer to use daily forex strategy, rather than the long-term.
Daytime use of strategies attractive for several reasons:
- For short-term trading requires a small amount of the initial capital.
- For the beginners it is easier to learn and delve into the process of trade, as they may in practice trace response currency pair on a particular event that happens in the currency markets.
- Quick results - you can quickly test your strategy for trading.
The fact is that regardless of the time interval schedule, minute, or five minutes a day, building a movement quoted prices almost the same. Wave movement of the market manifests in the charts of all sizes. Therefore, by nature intra-day trade is similar to the long-term trade, it allows you to apply the same principles and rules.
Daily forex strategy basically can be divided into three types:
First of all, it is worth noting strategy based on the output of macroeconomic news, various indexes, statistics and statements of government officials and directors of banks. These factors greatly influence the intraday volatility of currencies, after the release of important news market may take a few a few hundred points. Trading in intraday traders should be prepared for the different versions of events and be sure to observe the release of economic data in the news. In the absence of open positions, you should wait for the news and keep track of the market's reaction to it. In the case of open positions, should be available to take profits, and for loss-making - to set the levels of the foot. This is the best tactic to behave in such situations. Daily strategy - trading on the news can bring big profits, but still it has a major drawback, and macroeconomic statistics are almost impossible to forecast, and even more impossible to predict what he would say, for example, a representative of the European Central Bank at the next conference.
The next day type of strategy is to trade with the time factor of the forex market. When trading in the day, you should consider what now passes the trading session. There are four types of sessions: Asian, Pacific Rim, European and American. The forex market operates around the clock, but the stock exchanges, banks, big companies and funds operate on a fixed schedule. Therefore, the market for the day may appear as moments of strong activity and total calm. When and in which session you decide to trade the trader himself, based on their preferences. In this case, it is necessary to realize that the largest fluctuations of currency pairs will take place during the working day of a given region. Thus, active trading the most liquid currency pair EUR/USD goes from 5:00 to 18:00 GMT. At this time, first in Europe and then in the U.S. last time.
The third and last method of intra-day use of this strategy is based on the breakdown of the level of intraday ranges, as well as the highs and lows of the previous days. The essence of this strategy is that the trader is looking for the moments when the currency pair reaches a new high/low or beyond the scope of the channel formed within days. Non-standard behavior of currencies gives the signal to market participants about the possible start of a new trend. There is also a hybrid of the second and third type of day strategies when critical levels are the maximum/minimum prices of currency pairs made during certain sessions, the trader is waiting when you open a new session, these levels can be overcome, it will be a signal for further action.
The above strategy day one of the most used and known, they can make good profit. This requires better and more deeply explore the possibilities of each of the strategies to understand their subtleties and decide what type of day trading is more suited to you. Source: DewinforexSocial button for Joomla