Wednesday, August 05, 2015

How to decide in advacne the Value of currency will be Rejected at several places

How to determine the Currency Price Its been quite an exciting week so far, with lot of happening around but the most important thing is that if we can something out of that market movement, Here I am about to discuss "How we can project that current Value will be rejected or not", As we all know this market is not driven by retail trades and hence we have on control what so ever as we Collectively move in one side and still we can't drive the market up or down at a certain pace, but still we can collectively facilitate the market.

It is up to strong holders that how to drive the market and how to keep those level interested, that everybody took their piece while we approach an area high low which is breached by strong movement either way, Specially when we trade supply and demand and the movement is so sharp that sometimes we do see few fake retest and value still remain up or below a certain barrier.

Let's take a look at trade of Eur/jpy I took yesterday



So, when you decide to trade such scenario, think in Advance.
* Importance of Level, How crucial the level is, means the rise and decline from the broken level should be strong
* How Price is approaching the level or retesting it . If price still very choppy in retesting then move to lower time frames for entry
*It's better to wait for first test otherwise that supply or demand levels seems to be consumed if we wait for second retest and still low values can spike out of anywhere.
*Profit margin should be atleast 2 time the risks and If you trade at higher time frames then this type of trades can go atleast 5 to 10 times of the risks, So better you trade those higher h1 or m30

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