Trading Range-Bound Markets in Forex
Published on 13. August 2013
Software
DVD-ROM
978-1-118-69251-6 (ISBN)
Description
While currency markets often exhibit long-term trends that most traders love, they sometimes lapse into trading ranges for extended periods of time. In those environments, traders need to adjust their approaches in order to capture profits from shorter and more frequent market swings. In this video, Greg Michalowski reveals tactics and strategies that work in markets where the fundamentals are unable to create a sustainable trend. He asserts that traders should trade less; wait for good trade location; take partial profits when possible; follow popular technical indicators; be alert for technical failures; and be quick to abandon fundamental views that are not borne out by price action. Michalowski notes that in trending markets, fundamentals overpower technicals. In trading range markets, technicals trump fundamentals. That being the case, he advocates that traders pay close attention to widely followed indicators, including 100-day and 200-day moving averages; Fibonacci retracements; and simple trend lines, and wait for multiple confirmations before entering a trade. Citing several examples from the U.S. dollar market, Michalowski demonstrates how an intersection of trend lines and the 100- and 200-day moving averages was a springboard to one of the biggest moves of 2012. For multiple time-frame confirmation, Michalowski suggests traders use daily, hourly, and five-minute charts. Once a move has started, it should continue as long as the 100-day moving average, trend line, and Fibonacci retracements are not violated. If these key technical levels are violated, it's a signal to get out of the trade. Filled with real-world examples, this video will teach you:
* How to construct a long-term technical map of the market
* How to profit in tight trading range markets
* How to "risk a little" capital to make "more than a little" in profits
* How to determine when a trading range is ending and new trend is emerging
* How to use key technical tools to time entries and exits
Practical and easy to understand, the insights and strategies in this video will give you the perspective to assess market movements and pinpoint low-risk trading opportunities.
* How to construct a long-term technical map of the market
* How to profit in tight trading range markets
* How to "risk a little" capital to make "more than a little" in profits
* How to determine when a trading range is ending and new trend is emerging
* How to use key technical tools to time entries and exits
Practical and easy to understand, the insights and strategies in this video will give you the perspective to assess market movements and pinpoint low-risk trading opportunities.
More details
Person
Greg Michalowski is the Chief Currency and Trading Analyst for FXDD. He has been with FXDD since its inception in 2001, and through his eight years with the firm, has developed a keen sense of what distinguishes the winners from the losers in the retail foreign exchange market. Mr. Michalowski's career prior to FXDD included six years at Citibank NY, where he was an assistant vice president and trader in the treasury/funding area; four years as vice president and interest rate derivatives trader at Citibank London; five years at Credit Suisse First Boston NY as a vice president and trader in the banks funding department; and two years with Tradition NA, where he helped spearhead technology projects for the global interbank brokerage firm. He maintains a daily market commentary and forex analysis Web site at forex.fxdd.com and has written for various publications, including eForex and is currently the featured Forex Columnist for Equities magazine. Mr. Michalowski is also a feature contributor for greenfaucet.com and stocktwitsfx.com. His twitter site, twitter.com/gregmikefx, was one of 13 cited by SmartMoney magazineas a "go to" source for making money moves. He has 11,800 Twitter followers.