Movement of any exchange-traded tool or Forex market instrument can be divided into impulse and correction (bounce) to this impulse, respectively. Advantages of work on impulses are obvious; this is more powerful movement of the tool, and an increased chance for a positive outcome of the transaction.
However, besides definition of a tendency of price movement, basically trend definition, a trader is faced with such a task as minimization of potential losses from each transaction. .
Opening of trading positions towards a trend from bouncing (correctional) price movements a trader gets an undoubted advantage:
- Potential losses significantly reduce;
- Potential profit grows;
At the FMA_SAR Department of the Academy of Trading Masterforex-V, traders open trading positions only on the basis of this principle. Thus there is a minimum of lost funds from unprofitable positions and a maximum of earned profit from profitable positions.
Tactics examples of work "from price correction":
