It’s a thin line between profit and loss. The market that gives money can quickly take it back. Its favorite tool for taking back your hard-earned profit? Volatility. Traders have a love-hate relationship with volatility. Granted, traders want markets to move, and generally, the more movement the better. However, being on the right side of the market is another thing altogether, and too often attributed to “luck.”
Many stock and commodity traders live by oil reports, earnings, unemployment figures and fed announcements. The Forex trader lives by the non-farm payroll report. This announcement happens the first Friday of every month at 8:30 a.m. EST. This one event represents the greatest, consistent money making opportunity available to the forex trader.
Where there is potential profit, there is potential danger. To successfully trade non-farm payroll days, you need sniper-like tools, and uncluttered technical indicators. Enter Range Bars.
Success within Range
Range Bars are infinitely valuable for trading the high-volatility of a non-farm payroll announcement. This announcement can swing currency pairs as much as 300 Pips in any direction, within a very short period of time. High-volatility days present three major challenges:
- Unpredictability
- Unpredictability
- Unpredictability
Range Bars reposition the trader to overcome these challenges. When using Range Bars you no longer have to predict what the market will do because you can predict what you will do.
How many times have you heard the question, “What is your time-frame” as it relates to trading? With Range Bars this question is irrelevant and so is the answer. Why? Because range bars eliminate time and purely concentrate on price. This is vitally important to understand.
Look at it this way, imagine you are hunting. You have cleared your spot and aimed your scope. Now imagine that your strategy is to only shoot those animals that come within your scope or your range. This strategy greatly reduces your “volatility.” You move from looking everywhere, to looking in one place. This, in essence is the concept of range bars. You set the range (i.e. 5 Pips, 8 Pips, 20 Pips, etc.) and wait. When trades move into your view, you pull the trigger. In many ways, instead of looking for trades, they look for you!
A Timeless Recipe for Success
When you combine range bars with a simple TFXD crossover indicator by TradingFX, your entry signals become even more crystal clear with pin-point entry and exit signals. This clarity comes from the “price segments” range bars create. Once the Pip range is selected, bars are opened and closed only when this pre-defined range is reached or exceeded. In other words, you can now trade blocks of pre-defined volatility, no matter how much time this movement takes.
Why is this so important to your trading success? It is because traditional time-based indicators (i.e. minute bars) lure traders to concentrate on elements that have nothing to do with making money, and that is the objective of every trader, to make money. Minute bars make the clock the concentration, when it should always be price. You buy price, you sell price. Price is all that matters.
TradingFX Charts
VCI Group is one of very few companies with intuitive, user-friendy range bars. Five minutes after launching the TradingFX platform, beginner and advanced traders alike understand what’s on their screen. Another immeasurable component of the TradingFX forex range bar charts is the flexibility to customize.
Technical analysts prefer to tweak indicators to fit the preferences that historically work best for them. The TradingFX charting package promotes customization.
It’s your account, your money and your success. Try TradingFX today. A charting platform that fits the most important trader, you.
…see you there…
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