Reply To: Description of Price Action Moving Averages Strategy

Forums Strategies and Expert Advisors Price Action Moving Averages EA Description of Price Action Moving Averages Strategy Reply To: Description of Price Action Moving Averages Strategy

#4691
DominikDominik
Administrator

I want to add to the previous post that there are more situations in which it’s better to close profitable transactions with even small profit and open another than wait if it will go further…? or rather return…? …and so on. If you have ever opened just one order, you know exactly what I mean and how is it when you want to enchant chart to go in the direction desired by you… but it doesn’t work :) One great example is on screenshot below, which is taken from history of my trading on live account (few days ago). As you can see, at the end of transaction is my 2 Candles Engulfing Pattern in opposite direction than direction of my order and it is also signal to go out from this trade:

As another reasons to close the transaction (or put SL very tight) I can suggest you, among others, “strange” behaviour of price (leading to reversal or retracement) in values of:

– round numbers,
– fibonacci retracements,
– fibonacci extensions,
– support and resistance lines/levels,
– supply and demand zones,
– very small candles (which often represent a weakening of current trend)

… and, of course, during publishing news with high, medium and even low impact on traded currency pair.