There are many methods of trading the financial instrument in the market. If you are relatively new in forex trading then you might be spending hours after hours in front of the trading desk to find the best possible trades in the market. But if you look at the professional traders than you will notice they never spend hours after hours in front of their trading desk to find the best possible setups. Trading the financial instrument is just like doing any other business in the world. In order to make consistent profit in trading, you must trade the live assets with strong patience. In this article, we will discuss how patience will reward us with the best trading opportunity.
Price action trading strategy: Price action trading strategy is considered to be one of the most profitable trading strategies in the financial world. If you are relatively new in forex trading then you might find it a little bit difficult to trade the live asset in the market with price action confirmation signal since you will need to wait for a long time for a decent price action setup. So if you don’t have strong patience in the financial market you will never be able to execute high-quality trade setups in the market using price action confirmation signal.
Helps to trade the retracement: Most of the time the forex market retraces a little bit before it moves in favor of the long-term prevailing trend in the market. Most of the professional traders in the financial industry always execute their orders in the market in favor of the long-term prevailing trend with minor retracement of the price. So it’s highly imperative to show patience to trade the minor retracement of the price. If you look at the professional traders than you will see that the traders even wait for a week for the retracement to be complete in order to execute their trades in the market in favor of the long-term prevailing trend.
Helps to ride the winners: Most of the novice traders in the financial market often fails to make money in online trading since they cut their winners in the market very fast and let their losers run long. But if you truly want to become professional traders in the financial market then it’s highly imperative that you let winners run long in the market. If you look at the professional traders than you will notice that every single one of them in the market rides their profitable trade in the market as long as they can to maximize their profit. So in order to become a profitable trader, you must do so in the market.
Summary: Forex trading is not at all easy but once you master the art of trading it will be extremely easy for you. If you truly want to secure your financial freedom by trading the live assets in the market it is highly imperative that you follow proper risk management factors in every single trade. And always make sure to trade in favor of the long-term prevailing trend since it will greatly reduce your risk exposure in the market.
The traders use the moving averages to calculate the momentum and find the areas of the support and the resistance. The moving averages normally calculated by the average value of the security’s price for a certain time period, the results will be a smooth price fluctuation. There is a weakness associated with the moving average calculation because the average is calculated by the information on the price. The past information on the price will cause lag in the current price activity when moving average is being calculated. If you are in the Forex market it is a must to know all the possible detail related to trading strategies, the pros and cons are also important when trading the Forex market.
The Hull Moving Average Indicator (HMA)
The person called Alan has found the Hull Moving Average Indicator. The Hull moving average indicator is important because it improves the price fluctuations and also the moving average’s price lag. The Hull moving indicator achieves these by calculating using the square root of certain time period rather than using the real time period.
The pros related to HMA- the HMA has more timely nature and because of that the Hull moving average indicator is useful for finding out the turning points entry and exit of trades and also it act as the filter to decide the next move. There are limitations in the Hull moving strategy but still, it improves the curve smoothness plus reducing the problem of price lag that involves the average.
The cons related to HMA- the weakness of the Hull moving strategy is that the moving averages tend to overshoot the current prices so the traders should be aware of it. Also, Hull moving average cannot be used to decide the crossover signals. The reason this technique seeks to eliminate the lag.
The main ways to use the HMA
The changes in the slope of a hull moving indicator will help you to sell or buy currencies. In HMA if the slope climbs up then get ready to buy. When this happens you should enter the market and buy or place the orders. You should check the pending trades above the candlestick’s high. In HMA if the slope points down then you should get ready to sell. In such situation, you can enter the market and try to sell or place orders. You should check the trades below the candlestick’s low. These are the main ways to use the HMA.
Summary- the Hull Moving Average Indicator is the fastest and smooth average indicator. It also eliminates the lag and smoothing the price at the same time. So we can call it as something which is reactive to the price action. When you are in the Forex market it is important to learn and have the complete knowledge in the strategies of the Forex trading strategies. So can you understand the importance of suing these strategies? If you want to trade like a pro then it’s a must to be aware of the whole market.
The traders are the ones who make the trading harder by twisting and tweaking the trades. Trading is never easy unless you make it easy. As traders, you should not make trading harder instead you should make it simple.
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