The most successful traders are those who only risk their money when an opportunity in the market presents them with an edge, something that increases the probability of the trade they initiate being successful.
Your edge can be any of a number of things, even something as simple as buying at a price level that has previously shown itself as a level that provides significant support for the market (or selling at a price level that you’ve identified as strong resistance).
You can increase your edge – and your probability of success – by having a number of technical factors in your favor. For example, if the 10-period, 50-period, and 100-period moving average all converge at the same price level, that should provide substantial support or resistance for a market, because you’ll have the actions of traders who are basing their trading off any one of those moving averages all acting together.
A similar edge provided by converging technical indicators arises when various indicators on multiple time frames come together to provide support or resistance. An example of this may be the price approaching the 50-period moving average on the 15-minute time frame at the same price level where it’s approaching the 10-period moving average on the hourly or 4-hour chart.
Another example of having multiple indicators in your favor is having the price hit an identified support or resistance level and then having price action at that level indicate a potential market reversal by a candlestick formation such as a pin bar or doji.
To learn more, check out all of CFI’s free Trading Guides.(cutt DOT ly/rLHRw05) Paste the link in your browser and remove the dot and put the real(.)
Forex trading becomes more difficult nowadays due to the recession and Russia Ukraine war.
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Absolutely Bro
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