Now, when you know most common forex notions like forex trading, forex rates, forex trade, we can proceed with our forex tip series. In the previous article we started talking about market entering strategies. Let's go further with considering the right points for entering markets.

Point 1.

Purchase on the third point of contact of the rising trend. Rising trend (up-tending line) is equal to rates rise. In this case we draw an up-tending line. To define the right point, we need to have the absolute market bottom and than we mark three rising rates bars. The third point is the best moment to buy and do nothing but buying.

Example:

Using such technique means checking rates beforehand. The rates may be absolutely different depending on when the rate will contact the trend. The best way to do that is using daily charts, where each day has it’s own level. To have more specific data one my use hourly or half hourly charts. Beware that software of low quality may provide you with misleading data and affect your analytics.

Point 2.

Sale on the third point of contact of the decreasing trend. This point is a mirror reflection to the point 1. I.e. traders behavior is opposite to the point 1 – one must sell, sell and only sell when the trend reaches third point of growth that was defined before, in the very beginning. Using these points is very easy: we have to find local top points, characterized by availability of not less than two higher points and two lower points. To define the right points it’s good to use daily charts, but hourly and half hourly show highly correct data.

To be continued

Part 1: Forex Exchange Markets: entering market -1
Part 2: Forex Exchange Markets: entering market - 2
Part 3: Forex Exchange Markets: entering market – 3 (Foreign exchange brokers should know)
Part 4: Оnline foreign exchange trading: entering market – 4
Part 5: Currency forex market: entering market – 5
Part 6: Free forex training: entering market – 6