Forex Strategy "s touch" works well on day intervals as well zhechasovyh and a minute on all currency pairs. I suggest you consider the 2 best points that allow us to conclude the deal with a fairly high probability of making a profit at a relatively low probability of risk in the current market trend. In Luciano, the White, Green, and Blue lines are called the Four Brothers. These lines always complete a cycle after a breakout occurs. When a breakout, or new cycle happens you will notice the lines branch out in the order of: Luciano, White, Green, and Blue, always in that order Top 3 New Trading Strategies For Consistent Profits In Forex. Anthony Best - May 21, 0
The 3-Touch Support strategy
One of the main facets of trading support and resistance levels is the idea they increase in their strength the more times the market fails to break past them. The trading books and websites state the reason why 3 touch theory forex get stronger with each successive failure is because it shows traders have an interest in keeping the market from breaking the level.
If the price fails to break the a support or resistance level multiple times it means the level must be important to traders in the market and its in their best interest to stop the price from moving past the level in the future. Common price action books and websites say the more times the market touches a support or resistance level without breaking it the higher the chance the market has of not breaking it on the next touch.
The rational behind this theory is if a level 3 touch theory forex been touched several times and has not been broken then it must mean the people who keep buying or selling when the price comes up to the level must have some sort of vested interest in keeping the price from breaking past the level. The books and websites state this increases the probability of the market not being able to break the level because so many people will start buying or selling when the price returns to the level, thus making it harder for the level itself to actually be broken.
In total the market has touched this level 4 times with each touch failing to break below the level. To a trader who uses support and resistance in their trading the support level above would seem like it can provide a high probability buy trade, they think because the market has already failed to break the support 4 times its unlikely it will be broken on the 5th touch.
It breaks straight through it, 3 touch theory forex, our supposedly high probability support level has been broken, how can this be? After the market touched the support level for the 4th time the price began climbing higher, the only way the price can move higher is if somebody has been placing buy trades, where will they have been placing buy trades? The point is they were placing buy trades all around the same point, which is why all the touches on the support level were 3 touch theory forex a similar price.
Now after the market touched the support for the 4th time the price began rising. For days the price continued to move higher and higher before a reversal occurred and the up-move turned into a downmove. It took the market another days for it to return to the support level, in total the price has been away from the support level for days, almost an entire year! Why this is important is because the concept of support and resistance becoming stronger with each touch is based around the idea that the people who have stopped the price from breaking the level in the past will want to stop it from breaking the level in the future.
The problem is the reason the traders had to stop the market from breaking the level in the past will change as new developments enter the market. For the first 4 touches on the support the banks were placing buy trades, when 3 touch theory forex price moved up the bank traders who brought made a nice profit, 3 touch theory forex. When they closed their trades the up-move changed into a down-move and the price began to fall, 3 touch theory forex.
The only reason someone would keep buying at a support or resistance level is to stop the market from breaking above or below the level, why they would do this is if they have trading positions placed which need to be protected. Support and resistance is a subjective technical analysis concept not only in its application i. e how do you draw correct levels, but in the assumptions it makes about why these levels work in the market. If the levels really did increase in their probability with each successive touch then the market would always be in a consolidation, the price will not be able to move anywhere because the levels would never be broken.
Save my name, email, 3 touch theory forex, and website in this browser for the next time I comment. Additional menu Home Strategies Technical Analysis Blog Forex Live Rates One of the main facets of trading support and resistance levels is the idea they increase in their strength the more times the market fails to break past them. The Multiple Touches Theory Common price action books and websites say the more times the market touches a support or resistance level without breaking it the higher the chance the market has of not breaking it on the next touch.
Look what happens when the price returns to the support for the 5th time…… It breaks straight through it, our supposedly high probability support level has been broken, how can this be? The answer lies in what happens in between the 4th touch and the 5th touch. When the market has been 3 touch theory forex down, 3 touch theory forex. Summary Support and resistance is a subjective technical analysis concept not only in its application i.
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, time: 6:54Support And Resistance Levels Don’t Become Stronger With Multiple Touches - Forex Mentor Online
Top 3 New Trading Strategies For Consistent Profits In Forex. Anthony Best - May 21, 0 22/11/ · Common price action books and websites say the more times the market touches a support or resistance level without breaking it the higher the chance the market has of not breaking it on the next touch. The rational behind this theory is if a level has been touched several times and has not been broken then it must mean the people who keep buying or selling when the price comes up to the level must have some Estimated Reading Time: 7 mins 28/08/ · Forex Strategy «3 touch» works well on day intervals as well as hourly and minute and on all currency pairs. I suggest you consider the 2 best points that allow a deal with a fairly high probability of profit with a relatively low probability of risk in the current market tren d
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