(This is a mini-series of Forex Trading tips and tricks by Eric Lye in his Forex Trading Blog. Our objective is to help traders learn how to trade Forex properly, be educated and excel in their career)
Test and Re-Test is a very common technique to look for triggers. Especially when price is a little bit far away from the support and resistance, you would minimally need to see a Test and Re-Test to form the interim support and resistance.
However, when market is undecided in the direction and you start looking for test and re-test, you would usually be caught on the wrong side. When you are unsure about the market direction, wait for consolidation to form. It can be a triangle or rectangle (or inside bar). When your bias is eventually form after collecting enough information from the market, look to buy on the low side of the consolidation or sell on the high side of the consolidation.
Friday, May 7, 2010
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment