Foreign exchange entry strategy [1]

Forex entry strategies are divided into two sections. The first section outlines the entire entry strategy and explains each strategy in detail. In the second section, I will demonstrate the entire entry strategy for you with illustrations. When it comes to entry strategy, I don’t know if you have a systematic cognition in your brain. Of course, it doesn’t matter if you don’t remember it. It can be divided into two strategies: adjustment entry and breakthrough entry. If you subdivide it, adjustment entry can be divided into Aggressive entry and conservative entry strategies, breakthrough entry strategies can be divided into aggressive entry and normal entry.

Adjustment entry is an entry against the trend, that is to say, it makes a callback along the normal direction of the day. Generally, we will intervene where there are signs of the end of the callback. So what signal shows that there is a sign of the end of the callback? First, you can refer to the trend of the currency on the day, such as volatility. Second, you can refer to the K-line chart and related oscillating indicators, and then combine your own experience, data of the day, and fundamentals to make a comprehensive judgment.

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Breakthrough entry is not difficult to understand, that is, enter the market after a breakthrough. Do you think this simple understanding is correct? If the currency pair has entered a continuous trend that day, do you think it is time to take advantage of the trend to intervene? Generally, we enter the market at the initial stage through breakthroughs. Of course, the premise is that you can have a greater probability. If we enter the continuation stage, we will enter again. Setting a stop loss is a very difficult problem, because it is far away from the support or resistance level. If the loss is too small, it is easy to be triggered, and if the stop loss is too large, the risk is too high.

Now let's officially talk about the first entry strategy: aggressive entry. The characteristic of aggressive market entry is to make a breakthrough in a volatile market. I think many people have done a volatile market, but many people have been eliminated by the volatile market. We should also follow the trend when doing a volatile market. For example, do you think If the trend is upward, then we should go long at the end of the shock instead of short at high positions.

The second is a conservative approach strategy. One feature of this strategy is to wait for the backtest to confirm that the upward or downward trend is valid before we intervene. Now the foreign exchange market is very complicated, and many times there are true and false breakthroughs, so backtesting cannot fully explain the direction of the trend. For impatient traders, they should reduce transactions, observe carefully, and then study the direction of currency pairs. Otherwise it will be often shuffled out.

The third strategy is to actively enter the market. Most of this strategy occurs after a major market, and the currency pair trend is close to the upper edge of the shock. Combined with a larger time frame, you will find that it tends to rise. If you want to do such a market, you can only do it at the upper edge, because once the data market is released, it will usually rise rapidly. At this time, you generally do not have time to enter the market. Secondly, even if you are quick, you may trade in a worse position. And will face the high risk of rapid backtesting.

The fourth is normal entry. Normal entry is easy to understand, but there are a few points to consider. The first point is the handling fee. Try to choose a broker with the lowest handling fee, because the profit of normal entry must be less than other entry methods. If it is too high, there will be no Necessary to trade. The second point is that the market has shown a strong unilateral trend for a period of time, which is mainly due to the consideration of expanding profits and reducing risks. The third point is to use the tentative increase strategy to make up for the losses caused by the earthquake. In the second point, it is said that the trend is stronger, so the tentative increase can not only make up for losses, but also expand profits.

Finally, let me summarize: short-term traders should focus on entering the market at the end of the adjustment, supplemented by the initial breakthrough, so as to avoid high risks. Small capital investors are suitable to use high leverage and heavy positions at the end of the adjustment, but we should reduce leverage by reducing positions at the beginning of the breakthrough. Finally, if you have any questions, you can leave a message to communicate, thank you.