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Trading a EUR/USD bounce by D este






Trading a EUR/USD bounce by
Article Posted: 02/09/2010
Article Views: 148
Articles Written: 387
Word Count: 173
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Trading a EUR/USD bounce


 
Investment,Finance & Investment
Every trade should be entered into with one clear exit target if the trade is profitable and another for a losing trade. Limit and Stop orders are crucial to helping you achieve this. Don’t let a short-term trade become a long-term investment by not placing a stop.

Moving your stop loss closer to the market price as your position becomes profitable allows greater flexibility in setting targets. You don’t have to call the very top or bottom of the market to regularly make money.

Study the forex chart below and you will see this same pattern develop when you have a established trend. Forex chart EUR/USD Forex traders need to recognize this chart technical setup that is breaking the original trend. The pair is in a downtrend on the four hour chart and many times if you are day trading you will see this on a 5 minute chart. and because it looks like it is retracing, You can use the Fibonacci tool to find potential resistance points.

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