Risk Management Techniques – Part 5 | Forex Chart Analysis

November 16, 2013

In today’s video we look into what is considered a high risk trading strategy and that is to identify trading opportunities on the extremes as well as swing highs and swing lows.

It can be seen that this consistent uptrend took three and a half months to build and yet only two weeks for the market to retrace 50% of the figure. What can be noticed in the trend channel built is that support does become resistance and this should be taken into account when searching for definitive support and resistance levels.

Using volume as an indicator of market activity when there is high volume it can imply extremes of the markets and so placing stops below the levels that created the volume spike can be advantageous.

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