Forex Strategy «On a Break»

Strategy of forex trading at the break in prices through the available levels are considered more effective methods of control trades, providing the trader high profitability and very often they have an association with stop orders, which open at the moment a breakthrough price levels and thus providing a chance to take a trading position at the beginning of the developing pulse movement.

However, stops are not always very practical, and sometimes even dangerous for commercial deposit, so this kind of trading is not always justified. Strategies for forex are calculated at the break, the options transactions on the market with limit orders allow traders to profit at sufficiently low risk. It is best to implement it can be directly during the subsequent corrective movements in the market.

Conclusion of a deal to buy the level of support in the area between the penultimate peak prices and the first Fibo-level last completed market movements in the market down.

On the growing forex market, we often see prices move up, which develop a zigzag. Usually, the first third part of the trend, as soon as it is already present and bulls in the market have moved to the offensive, bears (those who want to sell) still possess great strength, so they are often obtained after each spike the price up to lower prices so that they are at This descends to the level of the penultimate peak of the market. As a result — sometimes fall stops, then need a new surge, which pushes prices higher. However, the market — it is absolutely not a place where all levels are marked, and will stand in their places, and that is why at the last vertex, prices may not at all to find support, while leaving out even lower. If the trend in the market is strong enough, then the depth of price reductions rarely exceed 23% level of Fibonacci, and even fewer — 38% level of Fibonacci from the last fully completed movement of the prices down.

That’s exactly the zone that is limited to the penultimate vertex in the graph, and 38%-s of the last completed level of Fibonacci price movement down is a better place for the transaction to purchase. Figure 2 shows the search terms for the transaction to purchase.

Forex strategy "at the break" of Figure 1

Fig. 2. Conclusion of a deal to buy in a price range between the top 1 and the level of 23.6% on Fibonapchchi the motion 1-2 — the most opportune moment for those who want to take a long trading position. It should be noted that the level of the Fibonacci 38.6% — a level of price movement from the top of a 3.1, it coincides with the 23.6%-s Fibonacci level 1-2 from the top 1. Segment 1.2 or 1.3, which are relatively similar, defined as the last complete movement of the price down. Movement to the point 4 — completed the price movement upward, and from point 4 in the direction of the arrow — Unfinished price movement downwards, which remains so until the reversal.

Conclusion of the transaction for sale of the resistance in the zone between the penultimate base and the first Fibo-level of completion of the market price movement upward.

Similarly to the case with points 1 and 2, point 4 — a mirror image of the point 3 is designed to conclude a deal to sell when the return of the adjustment of market prices upward. In the currency market, which is going to go down, breaks sometimes determined at the time of breakthrough levels that were achieved in the preceding price minimum. Very often, mainly in the early stages of a trend down, recovery in the market price returns to the level of penetration of the support with the possibility of punctures above. Here — is precisely the place where you have to bargain on the sale. Find the area of resistance more precisely help Fibo-levels, among which the best works Fibonacci level 38%. But sometimes good enough is the level at 23.6% on the Fibonacci sequence, which shows a pronounced weakness of the market and its desire to go down.

In Figure 3 you see how you can apply the above outlined rules for the trade: A level was determined on a price base point 1, the level of B — the level of 23.6% Fibonacci interval 1-2; levels of C — at the level of 38.6% Fibonacci line segment 1 -2.

Forex strategy "at the break" of Figure 2

Fig. 3. Selling price of which was specifically between base 1 and the level of 38% Fibonacci of motion 1-2 - the best place for the conclusion of the short trading positions. Segment of 1.2 was defined as the last completed move prices higher. Movement to Point 3 — completed movement of the price down, but from the point on the graph 3 in the direction of the arrow — in progress upward price movement, which lasts until a new price reversal on the chart

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