What are the top technical indicators used for range-bound trading strategies

What are the top technical indicators used for range-bound trading strategiesWhat are the top technical indicators used for Range-Bound Trading strategies?

Using good trend-following indicators in a market that's just trading sideways, up and down within a narrow range either results in getting nowhere, or worse, getting whipsawed over and over by false trading signals. Technical indicators can help a trader profitably navigate through a period of range-bound trading .

Before a trader can profit from range trading, he or she must first recognize the fact that a market is lacking a genuine trend and that price is likely to continue moving back and forth within a sideways channel. A good indicator of the existence (or lack of) a trend is the average directional index (ADX). ADX readings above 25 are considered to indicate the existence of a solid trend. Readings lingering below 25 can indicate a currently trendless market that may remain range-bound for some period of time.

Once a trader has correctly identified a market as range-bound, the most likely profitable trading strategy trades price movement from the identified top of the range to the bottom of the range. Helpful indicators for pinpointing the top and bottom of a range while allowing for slight variations and changes in volatility include Bollinger Bands, STARC bands or the commodity channel index (CCI). These indicators paint a clear picture of the existing trading range and can also, by expansion or by a change in slope from flat to angling up or down, indicate when the market begins to break out of a range. Bullish or bearish reversal candlestick patterns occurring near the top or bottom of the trading range can provide additional possible trading signals for range trading. Momentum indicators, such as the moving average convergence divergence (MACD), can be watched for divergence from price occurring at the extremes of the range as signals that the market may be turning back in the opposite direction.

Detecting and trading range-bound markets

Detecting and trading range-bound marketsDetecting and Trading Range-bound Markets

We’ll go over various methods of detecting and trading during range-bound markets.

Join in to discover new ideas, indicators and tools to gain additional control over range-bound trading.

The fact is, during well trending markets majority of Forex traders trade profitably and comfortably, but once a trend is over all kinds of problems arise: trend-following systems no longer work, frequency of false entry signals increases bringing additional losses which eat up earlier accumulated profits.

Taking into consideration that Forex market spends up to 50% time in non-trending, sideways state, the knowledge of how to deal with range-bound markets becomes vital.

What is the simplest thing we know about the range-bound market?

. Its beginning is difficult to spot. Quite often by the time we realize that the market is ranging we’ve already made few errors and paid for it.

There are various strategies that tell how to trade during range-bound markets, but there are few that teach how to spot range-bound markets on their earliest stages, so that we can actually have a choice: to trade or to avoid it.

Range-bound Forex trading (General guidelines)

#1: We’ll be discussing methods and ideas for detecting and trading during range-bound markets. These methods are not going to shield you completely from ever changing market weather, but will help you to anticipate and make “weather forecasts” with additional accuracy.

#2: We'll use the main rule: if the market is not trending, always treat it as a ranging market.

When using indicator signals, if an indicator no longer shows signs of a healthy trend, immediately treat it as a beginning of a range-bound market until further improvements.

#3: There are few systems that can trade really well during both: ranging and trending markets, more often it is either one or another. If your trading system keeps losing during ranging markets, you have 2 options: a. stop trading during range-bound markets; b. make an additional system to use during this period.

Truly yours,

Edward Revy

and my best Forex strategies Team

Range bound trading strategies forex

Range bound trading strategies forexRange Trading

What is a Range Bound Market (or a Ranging Market)?

A range bound market is a market that mainly moves between two lines, the upper one is called Resistance (because it resists the market from going upwards) and lower one is called Support (it supports the price in moving upwards).

As we see in the picture, a typical range bound market goes up till it finds a resistance level, it kisses it and goes back down it it reaches a support level, kisses it then moves back to the resistance level again, and so on and on.

How can I trade in a ranging market envionment?

Whenever the market reaches a resistance and starts to bounce down, you should be selling. And whenever the market reaches a support level and starts to bounce up, you should be buying.

However, you should only enter a trade that agrees with the previous trend, never trade against it. So if the previous market has been an uptrend, you should only be buying. And if the previous market has been a downtrend, you should only be selling.

4range-bound trading(atr-standard deviation)

4range-bound trading(atr-standard deviation)#4 Range-bound trading (ATR Standard Deviation)

Submitted by User on June 8, 2010 - 03:15.

The Trend Strength Indicator that I have made is based on the same concept as mentioned here.

It plots the rate of change between the Atr and Std at whatever period you choose.

Simply put.

If it is going up the trend is gaining strength.

If it is going down it is losing strength and is either turning into a range or a reversal to be seen soon.

Generally the shorter the time frame the longer the period you should set.

Forex patterns and probabilitiestrading strategies for trending and range-bound marketswiley tra

Forex patterns and probabilitiestrading strategies for trending and range-bound marketswiley traForex Patterns and Probabilities. Trading Strategies for Trending and Range-Bound Markets. Wiley Trading

Acknowledgments.

About the Author.

PART ONE. THE WORLDS MOST DYNAMIC TRADING MARKET.

Chapter 1. Getting Started In Forex.

From Stocks to Forex.

Getting to Wall Street.

Welcome to the Jungle.

Football and Forex.

Stock Market Headaches.

Chapter 2. All About Forex .

The Canadian Dollar and the U. S. Dollar.

The Euro and the U. S. Dollar.

Trading Terminology.

An Easy Way to Understand the Exchange Rate.

Chapter 3. Questions and Answers.

Why Does the Big Money Trade Forex?

2range-bound trading(macd histogram range)

2range-bound trading(macd histogram range)#2 Range-bound trading (MACD histogram range)

Submitted by Edward Revy on December 17, 2009 - 17:44.

Another simple way to detect a ranging market is to use MACD histogram.

Remember, that when we look back at historical charts, ranging and trending market periods are very obvious, but when we return to trading in live mode, often there are few clues about the time when the market actually starts ranging.

How a MACD histogram can help?

By simply adding 2 levels – upper and lower horizontal lines above and below 0 on MACD, you’ll mark areas most vulnerable to market consolidations.

On the screen shot below I’ve highlighted the main ranging area the way we’ll be able to see it after it was formed (useful for trading breakouts afterwards). BUT, inside that green area I’ve highlighted zones of MACD histogram trading in between 0.005 and -0.005 values – this is when we will actually be able to detect a ranging market as we trade in real time .

a. If your platform uses 4 decimal piece quotes, you need 0.05 and -0.05. On the screen shot above I have 5 decimal quotes, so I’m using 0.005 and -0.005.

b. We can adjust/change MACD range-bound area levels to 0.003 and -0.003 or any other value you find most appropriate for your trading, but at the end, one thing remains true – MACD histogram hovering around its zero level suggests an area where we should expect some sideways activity.

Forex patterns-probabilities trading strategies for trending-range-bound markets

Forex patterns-probabilities trading strategies for trending-range-bound marketsForex Patterns Probabilities: Trading Strategies for Trending Range-Bound Markets

Ed Ponsi “Forex Patterns Probabilities: Trading Strategies for Trending Range-Bound Markets

Wiley | 2007-07-27 | ISBN:0470097299 | 250 pages | PDF | 5,2 Mb

While most books on trading deal with general concepts and shy away from specifics, Forex Patterns and Probabilities provides you with real-world strategies and a rare sense of clarity about the specific mechanics of currency trading. Leading trading educator Ed Ponsi will explain the driving forces in the currency markets and will provide strategies to enter, exit, and manage successful trades. Dozens of chart examples and explanations will guide you each step of the way and allow the reader to look over the shoulder of a professional trader hard at work at his craft.

This book provides traders with step-by-step methodologies that are based on real market tendencies. The strategies in this book are presented clearly and in detail, so that anyone who wishes to can learn how to trade like a professional. It is written in a style that is easy to understand, so that the reader can quickly learn and use the techniques provided.

Support and resistance trading tactics

Support and resistance trading tacticsSupport And Resistance Trading Tactics

Support And Resistance Trading Methods Work In Range Bound Markets

One of the best ways for beginners to get their feet wet is to learn simple support and resistance trading strategies. Often times beginners who know very little about financial markets begin with advanced techniques that can land them in hot water very quickly if they are not careful. In September of last year, I wrote an article about Market Cycles and how financial markets alternate between trending cycles and range bound cycles. If you did not read this article I suggest you do so because it will help you match the correct trading cycle to your strategy and increase your odds of success tremendously.

Wait Till Trend Ends

The first thing you want to do is identify the correct market conditions that lend themselves to range bound trading. The biggest mistake beginners make is trading range bound techniques when markets are trending. The key is to monitor the markets that are trending and wait till the trend ends. Once the trending cycle ends, markets usually enter a prolonged stage of consolidation or range bound activity. So make sure you start out monitoring markets that are trending but dont enter markets that are trending. In this example Im monitoring and waiting for the trend cycle to end.

If you continue to monitor specific stocks or other markets such as futures or commodities you will begin to notice how the trend becomes weaker and eventually the market enters a different type of trading cycle. This is the correct time to initiate support and resistance trading tactics. The longer the market stayed in one cycle the longer it will stay in the other cycle. In this example you can see how Devon Energy Corporation slowly transitioned from trending cycle to range bound cycle.

Taking Advantage Of Range Bound Trading Cycle

When you isolate the range bound cycle you want to make sure to give it a week or two to develop so that you can see if there is any directional bias. In simple terms you want to see if the range bound cycle has a directional slope. Even when markets are range bound and trend-less there is often times some degree of directional movement that the market has bias towards. This bias is usually a sign that the consolidation is a reversal and more often than not the range bound price action leans in the opposite direction from the previous trending cycle. You can see in this example how the stock favors the upside and leans upwards. The previous trending cycle was downtrend so its not surprising for the range bound cycle to lean in the opposite direction.

After you isolate the range bound cycle and determine in which direction the market is leaning, you can begin planning your entry and exit levels strategically. Your best opportunities will occur if you only take trades in the direction of the slope that the market is leaning towards. This tip will increase your profit to loss ratio as well as increase the size of the winners.

Second Example

I want to provide you with another example so you can get a good idea of how to isolate support and resistance areas as well as know which direction to take your entry and exit signals. Notice in this example Goldman Sacks is trending strongly upwards for extended period of time. A good way to begin your analysis is to start monitoring stocks or other markets you trade that are trending strongly in one direction. Usually cycles alternate so you can anticipate with a high degree of certainty that a trending phase will end and consolidation cycle will begin.

Begin Your Research By Finding Strong Trending And Volatile Markets

Once you find the right market and notice that the trend is coming to an end you can begin looking for range bound trading to begin. The next step is to isolate the range bound trading action and see which way it slopes. You only want to take trades in the direction the market is sloping so give the market some time to show you which way to position yourself.

Once you isolate the range bound cycle and determine which direction it favors you can begin to plan your entry and exits around that information. In this example you can see how the slope is trending down and my entries are always in the direction of the trend or slope in this case.

Binary options range–bound trading more than one way to skin acat

Binary options range–bound trading more than one way to skin acatBinary Options RangeBound Trading: More than One Way to Skin a Cat

Full Review of the RangeBound Trading Strategy for Binary Options

I always say that it’s best to trade with the trend and join an already established trend, but…there’s more than one way to skin a cat as they say. So why don’t we find a good strategy for ranging markets? Well, the first problem would be how to identify a rangebound area in a timely manner, not in the evening when we look at charts and feel bad for all the missed trades. If we could identify the sideways movement early enough, we could then use some Boundary options and assume that at the expiry time our option is inside the Boundary and thus In the Money. Once again forex-strategies-revealed lends us a helping hand and shows us how we can identify range bound price action with the help of the MACD indicator.

How to Use MACD for Identifying Ranging Markets

Although it is not a complete strategy, this can come in handy and we can work from here to adapt it for Binary options trading and a way could be the one I suggested above. Ok, here’s what the originator of the idea is proposing: apply a MACD indicator that plots a histogram on the chart of the asset you are trading and then draw two additional levels to it: one at 0.0005 and one at -0.0005. The settings differ depending on how many decimals your broker is using so you might have to adjust to fewer zeros or more zeros. According to the concept, once price is trading between the two lines, we can consider that we are in a rangebound market. A picture is worth a thousand words so…

Notice that once the MACD histogram enters the space between the two levels, a ranging period begins and price moves almost sideways. Now please don’t imagine that those levels are some form of magical prison that will confine price forever or some sort of vacuum that sucks it in. Just as easy, the histogram could enter the zone and immediately exit it and that’s why it’s best to wait a little to see how price behaves once the histogram is in the zone or use additional indicators that hint us about a possible rangebound market. Read more about the MACD Tool for Binary Options here.

Using the MACD Range for Binary Options

Let’s assume that we correctly identified a range bound market. Ok, what’s next? Well, I guess the next thing to do is buy a Boundary option with the obvious choice being IN. But this depends a lot on what strike prices are offered by our broker for this type of option. There is another way though, but you will need some knowledge about Support and Resistance: draw the support and resistance levels corresponding to the ranging period and buy Calls when price touches support and Puts when price touches resistance. For this to work you will have to trade after the S/R levels can be properly identified (once rejection is seen and S/R levels can be drawn). What do you know, there’s another way of trading this as well: once the histogram clearly exits the ranging zone, trade the breakout, meaning buy a Put if the histogram breaks the -0.0005 level and buy a Call if the histogram breaks the 0.0005 level. This should be accompanied by a corresponding break of the support and resistance level that you have already drawn. If you can find any other ways of trading using this idea, don’t be shy of sharing on the Forum.

Why does the MACD Range Suck?

The MACD histogram will enter the zone between 0.0005 and -0.0005 very often and most of the time it will not remain there. This is true even if price is not trending, just moving strong enough for the histogram to surpass our levels so trader skills cannot be replaced by drawing two lines on a histogram. Also different assets have their own particularities and the suggested levels will not be appropriate for all pairs or all types of asset. In fact the author recommends us to change the levels and adapt them to the pair that we are trading. Again, trader skills come into play.

Why the MACD Range doesn’t suck?

Identifying a range bound market as soon as it begins is difficult even for an experienced trader and although this method is not bullet proof, it can give us a heads up about the possible beginning of the ranging period. Also it allows us to trade in several ways, using Boundary options, normal Calls and Puts and a potential breakout once the histogram leaves the range zone.

Range-bound trading

Range-bound tradingRange-Bound Trading

Over the last couple of months the Stock Index futures, Dollar index and 30 year T-bond contracts have been seesawing back and forth, one day up and another day down. For traders who practice the method of trend following, it has been quite a challenge. Partly because price movement has failed to follow through in any persistent fashion, trends have tended to be short lived causing these aforementioned traders to come into the market often late into the trend. This occurs because the confirmation of trend is typically happening at the top or bottom of the ranges.

The charts below show what a range-bound market looks like. These are the three markets I mentioned earlier. Notice the lack of follow-through, or trending, in all three of these markets.

In a conventional sense, most traders would want to see price breakout of these ranges and continue trending. These consolidation phases occur as market participants are undecided as to the future direction of prices. They would rather see other traders push prices outside of the range before committing to either buying or selling.

Thats fine except for the fact that when you wait for prices to leave the range, you will not find the lowest risk entry points. The simple reason is that price is usually high when breaking the upper part of the range and low as it falls through the lower boundaries of the consolidation.

Instead, an alternative way to trade a range bound market would be to look at the top of the range as a selling zone, and the bottom of the range as an area that provides buying opportunities. These trading opportunities would come in the smaller time frames.

An example of these is shown below in the 240 min chart of the E-mini SP 500 futures contract.

Notice that shorting around the 2100 to 2105 area (top of the daily range) produced very profitable trades to the downside. Similarly, buying in the 2029 to 2035 zone (bottom of the lower range) made for very good long trades. We also know that markets dont stay range bound forever. So, its inevitable that indeed, they will break-out of these ranges. When they finally do, the trader using this technique will stop out with a small loss.

Incidentally, just because a market breaks the upper part of the range, its not necessarily an indication that it will go higher. There are many instances where breakouts are false which means they reverse, quickly trapping those unsuspecting traders that subscribe to the traditional technical analysis method of trading. And yes, some of the time breakouts have a strong move in the same direction. The only challenge with buying or selling the breaks is that these entries are not low-risk.

All told, markets that are trading in a wide range dont have to be challenging, as they provide great opportunities for those that have a sound, low-risk strategy. And in addition, for those traders that understand the different environments that markets routinely fall into, the array of possibilities is endless.

Until next time, I hope everyone has a great week.

Stocks day trading using alternating cycles

Stocks day trading using alternating cyclesStocks Day Trading Using Alternating Cycles

Cycle Analysis For Stocks Day Trading Techniques

In this article Im going to show you a great way to analyze markets. This method of analysis will help improve your stocks day trading technique as well as improve your overall trading results. One of the first things I teach traders is to look at the big picture and work down from there. When analyzing markets from a long term view you gain insight into past trading history and more importantly clues as to how the market may behave in the future. The first thing I usually pay attention to is the current conditions of the underlying market. In other words I want to see if the market is trending or range bound. Once I determine the current trading characteristics I immediately look back to see when the market exhibited the opposite characteristics.

Remember The Golden Rule

One of the most important rules every trader should know is the longer markets trends and exhibits one way momentum the higher the odds that a range bound period is approaching. Conversely, the longer the market is trend less or range bound the higher the odds that strong directional momentum is approaching. There are exceptions to this rule but typically, when you see a long trend that lasts for several months you almost always see a trend less consolidation period immediately following the end of the trending cycle. Similarly, when markets are range bound for extended periods of time a strong breakout out accompanied by volatility and momentum typically follows this pattern.

Applies To Different Time Frames

Since markets are driven by people and people are emotionally driven this pattern tends to apply across stocks, futures, commodities, currencies and most other traded financial markets. Moreover, this pattern of alternating between range bound and momentum tends to apply to different time frames as well. Notice in this example how Hyatt Hotel stock alternates between range bound and trending periods, once you start paying attention to this alternation pattern you will begin taking it into consideration when planning your entry and exit strategies.

In this example you can see how this pattern applies to intra-day price fluctuations as well. You always have to keep in mind that markets are driven by emotions. This will help you gain better perspective of how markets really work and whats really behind each move. Also keep in mind that there is some correlation between the length of time of each stage and the following stage. In other words if the range bound stage lasted 2 months the odds are the trending momentum stage or cycle will last a few months as well.

How Can You Benefit From Alternating Cycles

Once you become aware of alternative trading cycles you will begin to look and analyze markets a bit differently. Not only will you pay attention to what the market is currently doing you will also start looking at the past few cycles to gain clues to help you determine how long the current cycle will last. For example, the U. S. Stock Market is just entered what appears to be range bound market conditions after trending for several months. You can see by looking at this chart that the stock market was previously trending strongly since September of last year. It appears that sometimes during the first week of April of this year, the Stock Market entered a trading range cycle. Since the previous cycle lasted several months, It would be reasonable to assume that this stage will last several months as well. Keep in mind that this analysis is done based on probabilities and not certainty so no one knows for sure what the future holds. However historically alternative cycle analysis has worked for over 100 years now and the odds are it will continue to work in the future just as well.

The U. S. Stock Market May Stay Range Bound For Several Months

When you see that Markets are changing from one cycle to the next you should seriously reconsider how you trade that market and the type of strategies that are working in the current cycle; once the cycle changes the techniques that were used effectively and once that worked in the previous cycle will not work in the current cycle. Therefore you must adjust your trading style and learn to trade both trending and range bound trading cycles.

How Can You Tell If Current Cycle Is Ending

Forex learner free online training

Forex learner free online trainingPivot Point Trading Strategy

forexlearner

Pivot Point Trading Strategy

What is pivot point?

Pivot point is a popular method for fixing buy sell signal in forex. To identify Reversal point (where price comes back from opposite direction) traders use pivot point rapidly.

At pivot point the chart can be divided into different sections. The middle point in pivot point (PP). If the price is above the pivot point, then the market is bullish (uptrend market). If the price is below the pivot point, then the market is bearish (downtrend market). R1, R2 and R3 are resistance level which is above pivot point. S1, S2 and S3 are support level which is below pivot point.

S = Support

R = Resistance

How to measure pivot point?

In case of pivot point:

High = the maximum price of yesterday

Low = the minimum price of yesterday

Close = the price at which market closed yesterday

R3 = High + 2 x (PP – Low)

R2 = PP + (High – Low) = PP + (R1 – S1)

R1 = (PP x 2) – Low

PP = (High + Low + Close) / 3

S1 = (PP x 2) – High

S2 = PP – (High – Low) = PP – (R1 – S1)

S3 = Low – 2 x (High – PP)

You can work hard to find out high, low and close to find out pivot point. You can also use pivot point calculator to find out high, low and close data. Also there are some pivot indicators, which will show pivot point in your chart. For this see the indicator section.

How to use pivot point to trade?

Break out trading

When you trade in case of breakout, similarly you will do in here. If price crosses the pivot line, and closes in one direction then price moves toward that direction. See the chart below:

The green point shows that the price was below the pivot point and it crossed the green line and went upwards.

When pivot line breaks, it means that price will go towards that direction. The way to do break out trade is, to open the trade at the direction of break out. When you open the trade, then you will set the stop loss at the opposite of broken line and take profit will be the next line.

See the chart above. Trade opened at 2.0550 (Green line) prices. Stop loss has to be set at 2.0535 which is below pivot point (Red Line). Your take profit will be 2.0594 besides R1.

This trade consist only 40 pips. Do not be too excited. Since this does not work all the time. This can add confidence with technical analysis that you are not doing anything wrong.

Range bound Trading

Range bound trading is when price stops between 2 pivot points. That means it goes round and round between two lines. See the chart below:

The many times when price hits the pivot point, it becomes more and more powerful. If price hits pivot point 5 times a day, but does not break, then it means that the pivot point is very strong. But if price hits pivot point 1 time a day, then for doing range bound trading, then you have to wait for the price to hit for one more time.

If you see in a chart where price hits pivot point 2 times without price break and goes opposite direction, then you can think about range bound trading.

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Range mq4

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How to properly trade arange bound instrument,part2

How to properly trade arange bound instrument,part2How to Properly Trade a Range Bound Instrument, Part 2

In Part 1, Matthew Cherry details how traders can use the two statistics, frequency and range to help navigate sideways markets. To read part 1, click here .

In the second part of this article we will discuss the remaining two statistics, reaction time and strength . as well as start our initial development of a trading strategy.

Click here to order your copy of The VXX Trend Following Strategy today and be one of the very first traders to utilize these unique strategies. This guidebook will make you a better, more powerful trader.

Reaction time and strength are both measures of the price movement, however unlike the other statistics, these two measures are highly time sensitive. To calculate reaction time, you need to count the amount of bars that fall in to the range and divide it by the total frequency of each bound. To get the best representation of this measure you need to view the price action on a shorter time frame, one where you can break the price movement down to more precise time frames. If you do not break the chart in to more manageable time frames then you can get a very different figure that can lead to miscalculations in your trading.

The above charts are a 4h chart and the corresponding 1h chart for the same time period. Using the two charts as an example we will calculate time reaction and get two very different figures.

For the 4 hour chart we see 3 separate instances where the price reacted to the range, each with 2 bars inside the range for a grand total of 6 bars. We divide this by the number of distinct instance (3) and get an average of 2 bars which represent a reaction time or 8 hours.

However if you use the 1 hour chart we get a much different answer. Here we see the same 3 instances, however there are more bars in range because each bar now represents 1 hour instead of 4.

After counting each instance we get the following results: 5 bars in the first range (4 if you exclude the outlier), 3 bars in the second and 5 bars in the third, a total of 13 bars. This gives an average reaction time of 4 and 1/3 bars which is the equivalent of 4 hours and 20 mins. This figure is nearly half the reaction time found using the 4 hour chart and highlights the importance of choosing the correct time frame to analyze.

It is important to note that you can use an even more specific time frame, such as a 15 min chart, however it is important not to over optimize this statistic as it more appropriately used as a gauge rather than an exact trigger.

The final statistic, strength, is one of the most important statistics you need to find as it plays a very important role in determining your overall trading strategy for this setup. Strength refers to the average price movement that occurs after a reaction to one of the bounds.

To calculate the strength, you should start by highlighting the reaction of each frequency . capturing the greatest distance the price moves after it has exited the range . This is can be done by finding the high or low point (depending on the which bound it reacts to) the price reaches after reacting to a bound, then measuring the total distance from this point to the inner range bound. Below is the summary of the measurements:

Once you have calculated the distances, you can find the strength by taking the average. Additionally you can find other useful statistics such as the max movement, the median movement etc.

Now that you have all four statistics, you can start to formulate your trading strategy. The first step to this process will be assessing whether the price is still exhibiting range bound characteristics. If the price is beginning to trade only towards one bound or has consolidated significantly it could be a signal of a breakout and additional risk management will be needed. However, if the price looks to continue to trade within the range, you can use the statistics you have calculated to develop a unique trading system that will provide better entry and exit points and maintain strict risk control. Several examples of how to create your own trading system based on these statistics will be shown in the next part of this series as well as an additional analysis and risk management lessons that can be used when trading this type of strategy.

Matthew Cherry is a market analyst for TradersChoiceFX. Many more of his latest articles can be found on the TradersChoiceFX Forex Blog. You can download a free Metatrader Practice Account from TradersChoiceFX and get instant access to a special report that will teach you how to use a Forex bonus program to improve your success as an FX trader.