A Profitable Setup
Posted on September 6th, 2011 in currencies trading and tagged currencies, forex, forex demo
If you’re using any type of signal indicators for trading in the Forex, you ought to find the setup which will render you the most profits. So if you opt for a strategy using Elliott Wave indicators, go straight to the Forex demo platform to experiment with different parameters.
Those who favor Bollinger bands for instance, have realized that in order to benefit from short-term positions, they have to pick a setup that indicates when the upper and bottom bands are well separated. This channel type position is usually seen in the 5 and 15 minute time frames. The higher possibility setups geared for taking advantage of price channeling, usually show that the best times to trade materialize after a news release. Just look at what happens during the reporting of Non-Farm payroll, at the close of the London market and prior to the closing of the American market on Friday; you’ll see that it offers remarkable momentum. If you set up your charts to pinpoint when prices pierce through the upper or lower Bollinger bands, you’ll capture an enormous number of pips. Note though that if you happen to be in a trade prior to an announcement that’s as crucial as Non-Farm payroll, you should consider exiting beforehand.
If you’d rather trade currencies using Fibonacci levels, search for articles that focus on tips for Fibonacci enthusiasts. They’ll provide you with methods on how to set up your charts to identify the trend and possible retracements.