| ONE DIRECTIONAL EDGE - Part 4. |
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| Written by admin admin | |
| Thursday, 14 February 2008 | |
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ONE DIRECTIONAL EDGE - Part 4. The aspect most struggle with is to let go of the concept that there is no recipe, no formula, no indicator that can pinpoint entries or generate reliable signals: two lines crossing, an oversold market, a percentage retracement. Here is the very best I can do on when to enter a trade, the golden rule that works for me: more often than not I enter a trade because of my perception that the price now, relative to recent price action, is HIGH or LOW, as the case may be. When you think about trade triggers, you must consider that the main characteristic of the currency market is its immense intra day volatility relative to what we think a nice profit is, say 30 - 40 points. Think about that for a minute. It has important implications. It means there is no way that you are consistently going to pinpoint this market's intra day turning point within 20 pips. Therefore my trigger is based on something conceptually different from the traditional TA approach with its attempt at precise price picking. Tag it:                  |
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| Last Updated ( Thursday, 14 February 2008 ) |
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