Forex trading is currently used by Forex traders as it is calculated based on the movements of the previous day and deals are entered when the price hits one of the support and resistance lines formed by the pivot points if it is in line with your index to determine oversold positions overbought. Contrary to what some might think, Forex trading through the points of reference may be the most popular way to trade in the HBSwiss Software financial markets today. Long before computers were hacked, this method was used by traders to identify hidden levels of support and trade.
The benchmarks are still used by both professional traders and technical analysts. The main advantage now is that we have computers that can calculate our points in advance. Many graphic packages can be calculated for you in any way. Thus enhancing the use of focal points.
There is much more to using the points of focus in the Forex market trade than we will mention in this article, because the goal is to basically give you the concept of Forex trading through the points of pepot.
Remember that the market can only go up or down or move sideways. It is like a rubber band that is extended, sooner or later will go to the point of equilibrium, which then makes the market in a state of equilibrium, and then spread in the opposite direction only to recover and reach another point of equilibrium, then come events or data to move the market in a new direction and so on Day after day. The benchmarks can help us determine how resilient the market will be before it recovers.
While there are many time frames that can be used to calculate pivot points, but for the purpose of exercise let’s focus on the daily framework (ie, 24 hours). Points are calculated using the opening, closing, closing and closing numbers of the previous day. There are a lot of Pivot Points available on the Internet so you do not need to waste your time manually. Also keep in mind that the more time frame you use, the more time you have to stay in the market or wait until you reach the next entry point.
Pivot points other than other indicators are objective. This is because they are math calculated, so there will be only one answer for each time period.
Many personal indicators, such as the Fibo Nachi correction levels (and I am a fan of Vipo), Elliot waves, etc. can bring together different people who trade in different directions at the same time due to individual interpretations.
Pivot Points can help predict the next day’s peaks and lows in advance. Pivot points can give you between 4 to 8 levels of support and resistance. However, you still need to set the direction yourself to become a successful trader using pipot points. The focus points also work best when the market is in a clear direction.
Entry and exit points
Pivot Points can give you specific entry and exit points, rather than entering the market in the middle of a move or about to change direction. Here we’ll explain how to use other indicators to help us get in and out. If the market slows down at a certain point and you have a handle to determine the peak of the buy or sell, this will help determine the best time to enter or exit. If a Fibonacci level coincides with the pivot level, HBSwiss Review will create a strong entry / exit situation. If the market is bullish and your preferred index is not near the peak, when it touches the first resistance level, you may be in a good position to stay in the market by placing your profit target at the next pivot point resistance line. A break above the resistance level can then make it a new stop or stop.
Clearly, the opposite will be true in the case of support lines as well. By merging your pivot points with your favorite indicator you can develop your own trading system that no one else uses.
Today’s trading is likely to remain between the first support levels (S1) and the resistance (R1) as traders are drawing a picture of their markets. Once one of these levels is breached, other traders will start to enter the market, and when the second level breaks, long term traders are likely to begin to attract to the market.
Knowing where traders expect support and resistance points can be a big advantage especially when there is no external impact on the market. If there is no significant market news between yesterday’s close and the opening today, local traders and market makers tend to move the market between the P (P), the first support (S1) and the resistance (R1). If one of these levels is broken, we can expect the market to test the following levels (R2) and (R3)
While there are many other aspects of the pivot trade, why not try this simple method first and see if it will develop your own strategy by using the current trade techniques in parallel with the points of focus.
The Elliott Wave Theory for Forex Markets
What is forex or currency trading: Forex is the largest financial markets in the world, where more than $ 1.5 trillion traded daily from different currencies. Unlike other financial markets, the Forex market does not have a physical place or a central exchange to complete exchanges but it is made through an electronic network of banks, companies and individuals trading in a country’s currency against another currency.
Forex trading or foreign exchange is linked in all its aspects to money. Money from all countries of the world flows in this market to be sold, bought and traded. In the forex market, anyone can sell or buy a particular currency with assumptions to check at the end of the transaction. When dealing with foreign exchange, you can buy a currency and then sell it for profit. For example, a speculator may buy the yen when the yen appreciates against the US dollar and then sell the yen and buy the US dollar again and then it will have some profit.
One of the most well known theories of technical analysis in Forex trading is the Elliott Wave Theory, developed in 1920 by Ralph Nelson Elliot as a way to predict stock market trends. The Elliott Wave Theory uses partial mathematics to measure market movements in order to build traffic expectations based on common behavior among the trading public. Fundamentally, the Elliott Wave theory is that the market – in this case, the Forex market – is moving in a series of five bullish waves followed by three bearish ones, which happens frequently. But if it is so easy why not gain anyone in the market just by catching the wave and ride it before it breaks on the beach. In fact, there is much to do in addition to Elliott waves.
One of the things that makes it difficult to ride Elliott waves is the timing – of all the wave theories, Elliot’s theory is the only one that does not set time limits for market interactions and reactions. It is worth mentioning that all the theories based on partial mathematics speak clearly about the existence of multiple waves within waves and other waves. Interpreting data and identifying correct curves and peaks is also dangerous. To the extent that we can say that if we put 20 experts in Elliott wave theory in one room, they will never reach agreement on the next direction of the stock, or in our case currency.
Elliott Wave Basics
* Every action followed by a reaction. This is one of the standard rules in the field of physics which is based on the idea of total behavior and is based on Elliott wave theory. If the price falls, people buy and when people buy, this demand will increase and the supply will decrease, which will push prices higher. Almost all systems that use trend analysis in forecasting and currency market movement depend on which moves will be followed by predictable reactions and then profits can be made with them.
* There are five waves going in the same direction of the main trend followed by three waves corrective (movement “5-3”). Elliott’s wave theory is based on the fact that market movements can be predicted because of a smooth five waves that move in one direction (trend). Followed by three “corrective” waves that are moving in the opposite direction of the market towards the starting point.
* Movement 5-3 completes the price cycle. Hence the theory becomes more complex. Such as a mirror reflecting a mirror which in turn reflects another mirror, each 5-3 wave is not a complete cycle in itself. It is divided into a series of smaller waves as well as a part of a larger 5-3 movement – the next principle.
* This move 5-3 later becomes two subdivisions of the next 5-3 high wave. In the definition of Elliott waves, the five waves that correspond to the trend are rated 1,2,3,4 and 5 (pulses). The three corrective waves are called A, B and C (corrections). Each of these waves consists of a series of waves 5-3 each of which in turn is divided into a series of waves 5-3. The 5-3 session you are considering is a trading pulse while the correction is in the next 5 – 3 ascending sequence.
* The basic mode of Form 5-3 remains constant despite the different time period for each of them. Wave 5 – 3 may take decades before it is completed – and may end in minutes. Successful traders using the Elliott Wave Trading Theory in the Forex market say the main trick is to trade in conjunction with the beginning and end of the third wave to reduce risk and maximize potential profits.
Because the timing of each series of waves varies significantly, the use of Elliott wave theory depends mainly on the interpretation of motion. Determining the best time to enter or exit the market depends on being able to see and follow the main model of the HBSwiss movement and the inside of the small waves and also know when to trade and when to stop your trade depending on your interpretation of traffic models.
The key thing in properly interpreting the motion model is to find the correct starting point. Just be able to learn to see the waveforms and distinguish them properly, you can be considered one of the experts in the Forex market and you will see that you can apply the theory of Elliot in all aspects of Forex trading and you will be able to use these models in the activation of your decisions whether you are trading daily or even the long term.