Every currency moves a different amount of pips per day, per hour, every four hours. You can use these statistical volatility numbers to predict the likely daily highs and lows of that time frame.
I recommend creating statistical tools that measure how far the currency moves each hour, each 4 hour period and each day. You can use this tool to help your trading in these ways.
FOREX TRADING SYSTEMS: How to enter in the direction of the trend on a pullback.To use statistical levels to trade with the Forex trend you first need to use a longer time frame chart, minimum 30 minutes up to daily. Simply look at the direction the markets going. If the trend is up we use statistics of hourly or 240 min low to look for buys and for the uptrend to continue. This allows you often to get in at or near the IDEAL place and thus maximizes your profit potential!
PROFIT TARGETS
Statistical likely highs and lows for the hourly or 240 min time frames make almost ideal places to exit trades. These can be used to estimate your profit targets and improve your win / loss ratio. For example if the uptrend is mild its VERY LIKELY to stall at the hourly statistical high if in an uptrend. Use trendlines projected under the bars lows and when broken AT or NEAR this statistical high we exit immediately.
For stronger trends use LONGER TIME FRAME statistics such as the 240 min stat high & low.
TO MEASURE A TREND
Not only are statistical levels useful for entry into trades and as profit targets they also allow you to see exactly HOW STRONG OR WEAK a trend is. For example, if the EUR/USD is going up but not hitting any of its hourly statistical highs then you know the trend is just a mild one and VERY LIKELY to reverse at the next resistance level. If on the other hand its going up 30% more this hour than normal then after a pullback or sideways consolidation its EXTREMELY LIKELY TO GO HIGHER! You want to as a trader trade the strongest trending pairs so you can look at many charts and see which are making HUGE statistical moves. Pretty simple stuff in concept and easy to apply to your trading with extremely profitable results.
I recommend creating statistical tools that measure how far the currency moves each hour, each 4 hour period and each day. You can use this tool to help your trading in these ways.
- Places to ENTER trades
- For use as PROFIT TARGETS
- To measure HOW STRONG the up / down trends are
- Many of the counter trend systems are based on STATISTICAL EXTREMES
FOREX TRADING SYSTEMS: How to enter in the direction of the trend on a pullback.To use statistical levels to trade with the Forex trend you first need to use a longer time frame chart, minimum 30 minutes up to daily. Simply look at the direction the markets going. If the trend is up we use statistics of hourly or 240 min low to look for buys and for the uptrend to continue. This allows you often to get in at or near the IDEAL place and thus maximizes your profit potential!
PROFIT TARGETS
Statistical likely highs and lows for the hourly or 240 min time frames make almost ideal places to exit trades. These can be used to estimate your profit targets and improve your win / loss ratio. For example if the uptrend is mild its VERY LIKELY to stall at the hourly statistical high if in an uptrend. Use trendlines projected under the bars lows and when broken AT or NEAR this statistical high we exit immediately.
For stronger trends use LONGER TIME FRAME statistics such as the 240 min stat high & low.
TO MEASURE A TREND
Not only are statistical levels useful for entry into trades and as profit targets they also allow you to see exactly HOW STRONG OR WEAK a trend is. For example, if the EUR/USD is going up but not hitting any of its hourly statistical highs then you know the trend is just a mild one and VERY LIKELY to reverse at the next resistance level. If on the other hand its going up 30% more this hour than normal then after a pullback or sideways consolidation its EXTREMELY LIKELY TO GO HIGHER! You want to as a trader trade the strongest trending pairs so you can look at many charts and see which are making HUGE statistical moves. Pretty simple stuff in concept and easy to apply to your trading with extremely profitable results.
No comments:
Post a Comment