How to Open the Right Price in Forex Trading
For those who have long been involved in the world of forex trading, predicting the direction of price movements is certainly not a difficult thing. Although it is true that sometimes these predictions are not always true, but at least they can get correct predictions with a higher percentage. then the question is whether the prediction is obtained without a strategy? certainly not.
Determining Forex Trading Prices
An experienced trader was also a beginner trader. The strategy in determining the right open price position is something that cannot be released just now. In forex trading there is no activity that can be done without thinking. All require special consideration and strategy.
Well, in determining prices there are usually two ways that traders often do, namely by using technical analysis and fundamental analysis. Technical analysis is a method used to predict price movements that will occur by looking at charts or price positions that can be seen based on indicators. While fundamental analysis is used to determine changes in currency values that occur due to changes in a country’s economy, or the impact of certain news that causes a drastic price change.
Based on this definition, it is clear that technical and fundamental analysis have different roles. However, in practice, many traders say that in deciding to make transactions, technical analysis and fundamental analysis cannot be separated.That is, technical and fundamental analysis go hand in hand to be able to trade properly.
Here are some ways you can choose to open a position or open the right price:
- Perform technical analysis well a few moments before economic news that will affect the price value released. You really need to pay attention to how far the price moves based on the indicator you use.
- When economic news is released, try not to open positions, because at that time the price movement will experience a sharply rising or falling price jump. You only need to observe price movements until they are in a safe condition.
- If you use certain indicators, open an position based on the direction of the conditions you use. For example, you use the moving average indicator. Well, this indicator will direct you to open positions when a moving average intersects, and or buy if the price is above the moving average.
In addition to some open position tips or how to open terpat prices based on technical and fundamental analysis, there are other tips that you can try, which are based on support and resistance. Support is a range or estimate of price where the price is likely to be in strong enough demand so that it can withstand further price declines. Meanwhile, resistance is a detainee over the possible price estimates that will be able to sell strongly enough so that it can withstand further price increases.
Just like technical analysis and fundamentals, support and resistance are also two things that cannot be separated to be able to open the right price position.Following are some strategies based on support resistance to determine open position or open prices:
- When the price is at the resistance level and does not go beyond this level, you should use a short position based on a price analysis that is likely to bounce down. To find out whether prices bounce down, you can combine candlestick patterns and shapes.
- If the price reaches the support level but does not break it, assume that the price will rise and you can take long positions. To find out whether prices will bounce back when touching support, you can use a candlestick pattern or shape.
- If the price breaks the resistance, along with the emergence of fundamental news you can take long positions.
- If the price breaks the support, along with the emergence of fundamental news that supports it, you can take short positions.
Those are some ways you can use to open the right price or open position. make sure before you choose and use it you first understand that the strategy you are using is suitable for your trading. Hopefully these methods will be able to maximize profits and minimize your losses.