In order to achieve success in Forex trading it is necessary to have a right money management system besides the trading system. By changing the lot size trader can build his account more efficiently.
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First of all fractal is a geometric shape. I think no one will argue that price charts usually form different shapes that very often repeat themselves. According to Bill Williams, fractal in a trading chart consists of at least five bars. They form the minimum and maximum of the price around which fractal forms. any trading system has zero math expectancy. That means if you had a loosing system you could invert it (buy instead of selling and sell instead of buying) and you have profitable system. However spread plays a big part in making harder for a system to be profitable. Head and Shoulder is a trading chart pattern that is used in technical analysis. It forms at the top of the ascending trend. Head and Shoulders is a strong signal about trend reversal. On the other hand the reverse “Head and Shoulders” forms at the bottom of descending trend signaling soon to become up trend. Forex market can be either in trending or ranging conditions. It is quite difficult to make a trading system work for both conditions. There are many trading systems that work in trending markets, such as swing system and breakout system. I would like to focus on range trading systems here. |
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