IMPORTANT INTERPRETATION How to use the matrix "market overview" If we compare the left side to the right side of the matrix would easily understand that we bounded a neutral zone on the chart. The top side of the neutral zone is entry point for long trade position and the down side of the neutral zone is entry point for short trade position. For each case there are different stop loss levels. Also in each case there are two targets that can be used as take profits levels. So when happen to be triggered an entry point (buy or sell) and right after we are on the market, must cancel the opposite position immediately if we had placements pending orders. The use of stop loss level will protect our capital from uncontrollable situations. If all goes well, the price will achieve the first target. In this case we have the following options: 1) You can close our position and take your profits. 2) You can close half of your position and move the stop loss to break even leaving space for the price to move in order to reach the second target. 3) You can move the stop loss to break even and left all your position to proceed in order to reach the second target and possibly beyond. How to choose to act each trader is a personal choice and is related to the risks that are ready to take, is related to the strategy pursued, is related to his capital which is available.
Posted on: Thu, 03 Oct 2013 09:17:44 +0000
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