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FOREX TRADING SIGNALS
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Operable profitable surprises
How long is maintained a trend? Until it
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breaks. This phrase is quite lapidary and, ingeneral, many beginner traders almost to despair. Trends sooner or later are finished and therefore we must take advantage of them. In this article, you will learn how to use the changing trends in their operational approach.
» Basic information
In this article we will take
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care of analyzing the time in which a trend is broken andhow to use this situation as an opportunity of trading profitable and low-risk, this isthe so-called "surprising movement". Suppose that a trend already exists since a long time ago and the various market participants see the trend as clear as shown in the graph (blue line). Therefore, we must assume that the more long and most obvious is the trend, most market participants will jump to it and try to operate it. It is irrelevant if these market participants open an operation at each point of the trend, andexpanded their positions, or pursue a completely different commercial approach. Inthis example we see in the market, the future of the DAX, which is not a new s. FromOctober 2014 the market moved almost as a picture book continuous describing a trend towards new century Each participant in the market was going in onedirection: upward. First, the magic mark of 10,000 points, exceeded to then form a small kick which resulted in the February 2015 new s trend. Since that time, the trendwas established.
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This means that the majority of the market participants were mentally in an upwardmovement of long term. Now we arrive at the surprising movement. If we assume that many of the market players think and act in unison, then the trend break will surprise many traders. Put us in your position: some traders will now have to close theirpositions, which opened with care, others will have even that change their positions.However, there are other traders who jumped the trend so late in our example thatdo not have another option that close your position at a loss in order to prevent further damage. This sounds like a situation in which many players on the market are forced to act quickly, in order to ensure the benefits or minimize losses. Exactly this situation is called "Surprising movement". Figure 1 illustrates the situation. The red section shows the surprising movement from that is formed and the new downtrend.We see a trend of long-term, continuous, that is coming to an end. Recall the definition of trend: A tendency occurs when an increase in s and the minimums prices in ascending order. A downward trend is the result of a fall in s and the minimums.
What causes the surprising movement?
This is precisely the most important point, that all the market participants are known for the first time. At this point they are forced to cope with the realities of the market and explore new paths. Therefore, the situation is very likely that it is accompanied by a disproportionately high trading volume. Therefore, precisely here is where comes in the strategy of the "surprising movement". With the knowledge that there is a greater interest in the market in this position, we can develop an idea of tradingbased on the decline in prices. Through an impulse that emerges in the market, canbe reached at the end of the current trend appearing a new trend and thus creatinga situation which can bring the balance over a period of time very short.




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