How to Determine the Peak and Valley
Trading with bottom buy and sell top strategy has a huge advantage again the price must also have a small risk. But to successfully do, we must really enter when the trend will reverse direction. That means we have to enter the trend at the end.
The problem is, how to determine the trend? and avoid the false end of the trend?
Peaks and valleys are a point of a trend. The characteristic of a peak is no longer superior to it. And the hallmark of the valley is no longer lower than its. To identify it of course with reversal theory.
Logically, the price will reverse direction if it is saturated or touch the support & resistance line. The main factor to determine the peak or valley is to use the indicator of saturation as well as the support & resistance line.
For entry point that is by using the signal given by candlestick.
Here is the rule to:
Buy while candlestick type of reversal occurs when the indicator shows oversold and the chart is around the support line.
buy bottom bottom buy bottom result
Sell when a candlestick type of reversal occurs when the indicator shows overbought and the chart is around the resistance line.
resistance to sell topsell tophasil sell top
To more easily determine overbought or oversoled, use the Money Flow Index indicator (5) or williams% R (7).
For signal entry can also use stochastic oscilator.
That is how to determine the peaks and valleys. In essence, transactions come in saturation area and around support / resistance.
Technical analysis with Williams Persen Range
Williams Percent Range is an oscillator type indicator (move back and forth) whose function is to signal a saturated market.
The scale used in this indicator is from - 100 s.d. 0, where the overbought condition if full range williams% -20 to 0. And the condition says oversold current williams% range -2 to -80.
In practice, the use of the range% williams indicator is not stand alone in use along with other indicators that can signal entry points.
However, we can also use the% range williams independently if we use a convergent strategy.
The rules of the game are:
Buy when there is a lower cover, while williams% range indicates increasingly higher and is in oversold condition.
Sell when there is a lid that semain rises, while williams its more modest and occur in the overbought area.
the percent williams range
To note is when using this convergent strategy, our target profit is not too long.
The problem is, how to determine the trend? and avoid the false end of the trend?
Peaks and valleys are a point of a trend. The characteristic of a peak is no longer superior to it. And the hallmark of the valley is no longer lower than its. To identify it of course with reversal theory.
Logically, the price will reverse direction if it is saturated or touch the support & resistance line. The main factor to determine the peak or valley is to use the indicator of saturation as well as the support & resistance line.
For entry point that is by using the signal given by candlestick.
Here is the rule to:
Buy while candlestick type of reversal occurs when the indicator shows oversold and the chart is around the support line.
buy bottom bottom buy bottom result
Sell when a candlestick type of reversal occurs when the indicator shows overbought and the chart is around the resistance line.
resistance to sell topsell tophasil sell top
To more easily determine overbought or oversoled, use the Money Flow Index indicator (5) or williams% R (7).
For signal entry can also use stochastic oscilator.
That is how to determine the peaks and valleys. In essence, transactions come in saturation area and around support / resistance.
Technical analysis with Williams Persen Range
Williams Percent Range is an oscillator type indicator (move back and forth) whose function is to signal a saturated market.
The scale used in this indicator is from - 100 s.d. 0, where the overbought condition if full range williams% -20 to 0. And the condition says oversold current williams% range -2 to -80.
In practice, the use of the range% williams indicator is not stand alone in use along with other indicators that can signal entry points.
However, we can also use the% range williams independently if we use a convergent strategy.
The rules of the game are:
Buy when there is a lower cover, while williams% range indicates increasingly higher and is in oversold condition.
Sell when there is a lid that semain rises, while williams its more modest and occur in the overbought area.
the percent williams range
To note is when using this convergent strategy, our target profit is not too long.
Komentar
Posting Komentar