How to make the best open forex trading position

Basically forex it is an aggressive investment. Forex price movements actually have very harmonious patterns. The patterns that form on your trading chart can be hidden. Then traders should be more careful to analyze forex, because many unforeseen events will occur. And now we will discuss about How to make the best open forex trading position.Please follow the steps below

How to make the best open forex trading position

There are 3 steps that must be passed to make the best position forex trading that is:

1. identify trends.

2. identify Reversal and retrace.

3. identify patterns.

Identify trends.

We only see 2 price movement that is trend up or up trend and down trend or down trend. In the main trend or primary trend there is a trend that fights the direction of the main trend. Dow says the market is stirring on each timeframe at the same time. And we also know that in forex market there are some timeframe that is;

1. Timeframe M1 time 1 minute

2. Timeframe m5 time 5 minutes

3. Timeframe M15 time 15 minutes

4. Timeframe M30 time 30 minutes

5. H1 timeframe time is 1 hour

6. Timefram H4 time 4 Hours

7. Timeframe D1 time 1 day

8. Timeframe W1 Weekly time

9. Timeframe Monthly time of 1 month

Where time or time frame shows the time where the closing price is drawn with candlestick and bar at timeframe respectively. This means that according to the price position dow in each timeframe always in the same position in the same time anyway. According to the dow trend there are only two uptrend and downtrend. What about Flat Trend, what Flat also includes the trend in the market. "I also do not know ..."

Primary Trend

Primary Trend is the main source of strength in one price pegerakan indicating the direction of the real trend, generally the primary trend can last for years.

Secondary trend

Secondary trend is Trend opposite direction with direction of main trend or primary trend and last weekly to monthly range.

Uptrend

An uptrend is identified when price pegging creates a new high value, with a lower value higher than before. Generally we are more familiar with the title Higher high and Higher low. Market traits that show uptrend as:

1. The price always keeps the new highs.

2. The lowest value higher than the previous low.

3. Lowest price above the highest price.

4. Highest price below the lowest value.

Take a look at the example below which shows Uptrend:

Downtrend

A Downtrend is identified when price pegging creates a new new low value, with a lower value lower than before. Generally we are more familiar with the title Higher low and Higher high. Market traits that show uptrend as:

1. The price always keeps the new lows.

2. Higher value lower than previous high.

3. Highest price below the lowest price.

4. Lowest price above the highest value.

Take a look at the example below that shows Downtrend:

Next Article : Identify Reversal and Retrace.