TRADING STRATEGY page 3

Every trader has at least once heard of aggressive intraday trading when numerous trades are placed during a trading session. Such a trading style is called scalping. Today we will learn what scalping is, how trading using this method works, and what its advantages and risks are. What Is Scalping in Plain Language? Scalping is a kind of speculative intraday trading strategy based on opening many short-term trades to get a small return on them and sum up the expected rate of return.

According to some participants of the forex market, night trading is impossible. Indeed, market activity is very low compared to the daytime, but it is this moment that allows you to place the most profitable trades. The reason for this is the benefits of a low activity state of most players in the financial markets.

One of the key concepts of technical analysis is a trend. Many strategies are based on determining where the market is moving and whether it is at the beginning or the end of that process. Such information is extremely useful for the trader. The likelihood of the continuation of the trend can be predicted by evaluating the intensity of trading. The strength of the market movement is often referred to as momentum, and there are several indicators created to determine it. One of them is Momentum, and today we will learn about its readings, settings, and application in forex trading.

The Envelopes technical indicator is one of the simplest indicators when in forex trading and is included in the list of tools on classic platforms. This indicator is based on the observation that after the price rises or falls, it returns to the main trend in any case.  

As a rule, the majority of newby traders start their first acquaintance with the forex market by trading in short-term time frames. But after a while, they come to the idea that to save their time and nerves they need to work in higher time frames.

Technical analysis of the market gives a variety of options for predicting the price movement based on the known indicators and their derivatives, resistance and support levels, Fibonacci Retracement, trend lines, etc. But there is one more tool, specific enough, which is seldom mentioned in classical analysis literature, and that is why it arouses great interest among traders. We are talking about the so-called "round levels".

Finding beneficial strategies in the stock market is not easy. One of the proven ways is to look for stock market anomalies. A stock market anomaly is a rate of return or investment strategy that seems to disprove the efficient market hypothesis. Today, most investors agree that markets are quite efficient, even if they do not believe in a pure form of market efficiency. But the belief that markets are not completely efficient has led many professionals to look for new market advantages and disadvantages.

The hourly time frame is one of the most popular time frames for forex trading. Even when you open a Meta Trader terminal, all of the charts are initially started on this very time frame. Hourly time frames accurately show global market trends, unlike lower intervals. It can be used for scalping trades, testing various intraday strategies, and searching for confirmation signals for market entry in time frames M30 and M15. We will consider the rules of this time frame in greater detail, as well as the appropriate indicators and strategies for it and the correct ways to analyze the chart.

Even novice traders, let alone professionals have heard of Ichimoku, but not everyone uses it and not that often, although the indicator is included in many programs for analytical trading. In fact, it is one of the most effective and multifunctional indicators that is meant to determine the price movement, support/resistance levels, and trend zones. So, today we will dive into the Ichimoku indicator: learn how to interpret its readings and apply that information to trading.

Beginner traders hold a position to the last minute, trying to break even, close it prematurely and have a missed profit, skipping a good exit point. Do you want to minimize such situations? Follow the exit strategy for beginners. We will analyze the basic signals for exiting a position and teach you how to work with the terminal's auxiliary tools.