Tuesday September 6, 2016 - 12:22:33 GMT
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Equitimax Reviews - Trading
Equitimax reviews trading and traders.
Traders look to identify simplistic, yet powerful elements in trading, to help them reap rewards from their trading efforts.
When Equitimax reviews this, the initial element that is popular for most traders is always evidence of a trend, as trend following strategies generally offer low risk and can deliver strong returns for that risk they are popular. There are numerous ways to define when a trend is in play, but one of the best is to look at the chart and if it is rising, left to right, then an uptrend is evident, if it is falling, left to right, then a down trend is evident.
But what time frame do traders look at? Often longer trends displayed on daily charts, can be in play for months and jumping in towards the end of a long trend may inhibit some traders, as they see no value in getting in “too late in the move”.
Shorter time frames are notoriously unreliable, as prices move up and down all day, week and month, even in an established and recognised long term trend.
The simple answer is look at the trend as something that has a definite beginning and look at it in comparison to what you want to take from a trade in that direction and use that to see if it has gone too far or has it not set up properly.
An example of that is that a trend on a five minute chart may be deemed to be in play, once a longer term moving average has been crossed by a trigger condition, like a shorter period moving average and the price. If this move takes thirty candles to unwind and the daily range is around one hundred and twenty pips, then a trade entry would offer a possible return of around ninety pips or less. This has to factored into a traders thinking.
Trading sensibly, can be as simple as putting the correct objectives into the trade, with a realistic optimism whilst not holding on for unrealistic outcomes from your trading approach. Trying to hold on for hundreds of pips may be plain unrealistic, so temper your trend trading objectives around the time frame and the daily range to at least add a credibility factor to your trading approach, irrelevant of your strategies exact set up and trigger conditions.
Equitimax reviews trading further to show that momentum is another key element that can help a trader maximise the returns on a trade by entering the trade when there is evidence of momentum and leaving if the momentum starts to run out or slow down. Momentum is the speed of change and trades that ride on strong momentum curves often reap greater rewards than trades that drift along with no real strength of purpose.
Momentum tends to be measured separately to price when used as a trading tool and often there are early warning signs when momentum is running out that can be used, before that falling momentum level is reflected in the price changing direction. Look out for divergence in price and momentum as if the price is pushing higher, yet momentum appears to be falling this can act as an early warning that the price move may falter offering an excellent exit point, before a market retracement or even reversal occurs.
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