Wednesday, June 17, 2009

Timing the Entry for Intra-Day Forex Trading

Timing the entry is the key factor to the success of currency forex online trading. The first step to time the entry is to have a decent forex day trading system, be it trend trading, forex swing trading, or forex scalping. The second step is to have the patience waiting for the maturity of whatever setup your are ambushing. Since you already know what exactly you are expecting, timing the entry will make cutting loss and riding winner much easier.

Timing the entry doesn't need to predict the market. On the contrary, it requires to follow what the market is leading at the present.

Timing the entry also means you are willing to stay flat if there is no forex trading signal triggered by your forex day trading system.

In a single trading session, there might be only 3 ~ 5 high probability low risk forex day trading setups. So most of the time, shrewd day traders just stand aside and watch how the market unfold its structure.

Take June 17, 2009 British pound as an example, after pound found support at 1.6233, which is clearly shown on hourly point and figure charts, there is an ascending triangle pattern formed around 10-day EMA 1.6296. Under this circumstance, a seasoned day trader is willing to make a long commitment only after pound breakout the resistance of the ascending triangle. So why not just long after pound found support? The support alone didn't trigger the long trading signal. It might just be a temporary pause of the downward momentum. Remember, to be succeed in currency forex market trading, there is no need to predict the market direction. Once pound breakout the overhead resistance of the ascending triangle, we have confidence that a long position is a high probability low risk trade. By the way, there is a malicious shaken-out after the breakout. The 40-pip dip found support at the 10-day EMA.

british pound ascending triangle pattern

So be advised to time the entry for your next currency day trading. You are right on your way to remain disciplined.


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