HOW TO USE PIVOT POINT IN FOREX TRADING GOLD
Day 01:07 | Posted by Hoang Tuan | 0 comments
PP is quite common indicator tool in forex trading, especially for use with the GBP / USD and XAU / USD. Today Linking Group will guide you how to use the most effective PP and tips in the application of PP. PP: pivot point S1: First Support (first level support) S2: Support Monday (support level Monday assistant) S3: support Tuesday (level of support Tuesday) R1: first resistance (first resistance) R2: resistance Monday (Monday resistance) R3: resistance Tuesday (secondary resistance three) formula: PP = (High + Low + Close) / 3 S1 = (2 x PP) - High R1 = (2xPP) - Low S2 = PP - (H - L) R2 = pp + (H - L) first. Forex trading using PP - Transactions in the market variable PP is the first point we need to pay attention before entering the trading market, because it is a basic floor or ceiling. The largest price moves often appear in the price of the PP. Only when price touches the PP, we can decide to buy (buy) or sell (sell) and set up fixed or cut losses latch profit, usually if the price is above the PP, the possibility that the market will go up and if below, the possibility that the market will go down. If we see the price move up and down around the PP and PP closed lower, then we will decide to sell (sell) . Stop loss point will be on the PP and the first profit target would be at S1. But if we continue to see the price tends to break through the S1, we have to pay attention to the expected profit or the next S2 S3. Linking Group 2 methods to retain profits as follows: * When prices break through S1 and S2 tends to touch, we leave the holes on the cut point S1 and attention to profit in S2, if prices continue to go through S2 and S3 tend to touch off point and I will cut holes in the training market S2..Neu way back, we retain a significant profit (positive cut holes). * for example, with volumes 0.5 sell and book profits hit expectations S1, when prices hit S1 we will close the profitable 0:25 lots, waiting for the expected retained 0.25lot S2, if prices break through S2 and S3 touch with trends, we latch 0.1 in point S2 and S3 keep expectations 12:15 wait. (Profit taking stairs expected resale when the market reversed). - Trading Tips * If price at PP, watch for a move back to S1 or R1. * If the price at R1, expect it to move to R2 or back PP * If no important news affecting the market, prices often move to S1 or R1 from PP. * In a strong trend, with important news, the price will break through the levels support and resistance levels and then move on. - what happens if you define the closing price the next day? From the formula: PP = (H + L + C) / 3 => find the closing price Close of the day if you determine the highest price, the lowest of the market that day. Linking Research Group for 6 months and have found a way to determine the closing price of the day with Gold, but after 21h30 and minimal error rates 3.5. We have based this calculation to calculate and recovery wave trading plan for the day goes on! Read more: http://www.lenmanglamgiau.com/2013/10/cach-su-dung-pivot-point-trong-giao.html#ixzz471nMGVBm
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