2131
'Kunle Adeyeri
Range is the price action difference between the high and the low of a particular currency pair of specified periodicity irrespective of direction. Thus, depending on the trader's style, focus could be on hourly, daily, weekly or monthly calculation of the price action. With benefit of hindsight and experience, the profitability from range trading retracement could depend on apart from periodicity but also the currency pair. The candlestick chart and bar chart can be used easily to determine range. The higher the time frame the more it seems profitable.
Retracement or pullback on range trading also is much dependent on periodicity, the extent of price movement and possibly the placement within the chart.
Simply let us have an example of say a pair range and say on weekly chart.
O = 1.5522 H=1.6122 L= 1.5510 C= 1.6120
O – Open, H – High, L = Low C= Close
The range is H – L = 1.6122 – 1.5510 = 0.0612. It means the currency pair has moved 612 basis point (bp) or pips within the time frame in question. How does this put food on your table you may ask as a trader?. Though it may not be 100% foolproof, but going by previous price action history, there is money on the table here.
The technique to be employed in this typical example is to consider the time frame (periodicity). Assuming this is on weekly and the candlestick is at the upper end of the chart, it is possible to make 100 – 200 pips here depending on the pair and also trader's target.
The calculation of final exit point TP3 should thus be: (H – L) /2 = 612/2 = 306PIPS. This should be marked as last TP3 (TAKE PROFIT). With entry say at between H and C the TP will be 1.5816
With entry say at between H and C , the next TP2 will be TP3/2 = 306/2 =153 PIPS at 1.5969
Lastly TP1 will be TP2/2 = 153/2 = 76.5PIPS at 1.6046
TP1, TP2 and TP3 becomes levels of exit points respectively.
Wisely these levels of exits should be applied depending on the stakes of the traders. High volume/size traders could use TP1 as exit, medium size traders TP2 and low volume traders TP3. These will guarantee maximum profit and minimal risks.
Full retracement may also occur thus giving much needed profit.
It has been a good trading year in 2015 going by market tips if you dutifully followed this column. People still call or mail to enquire if the market is still there or profitable. Yes it is, I do answer affirmatively.
Normally I do for the past four years make my first article of the year an encouragement to all. I will still reiterate here also that online (forex) trading is worth doing and investing in based on my personal experience since 2014. Many readers never knew my battling with cancer since 2014 because I never ceased to write, analyse and advise on the market. I am chipping in this to let you know how life could have been if I am not an online trader as the ailment left me partially paraplegic. It would have been a different story if all my living has depended on my two legs or full mobility. Despite the situation, I am still able to carry on with online (forex) trading. Online trading kept me mentally alert and gave me succour to carry on with life.
Though I do not wish anyone this but I can imagine a situation where people lose their jobs or come by one mishap of life. Online trading comes in as a ray of hope for earning a living. Be resolute in 2016 to acquire knowledge in online (forex) trading.
Having been away for a while, join me live in the next batch of training in January 2016. Enjoy your 50% discount. Happy New Year!
MARKET TIPS FOR THE WEEK MONDAY JANUARY 11- FRIDAY JANUARY 22, 2016.
Entry (SEP) and exit (TP/SL) could also be at trader's discretion. Money management strictly advised
NZDJPY (SELL LIMIT): Suggested entry 77.70 – 78.50. [email protected] Expected pull back upward may occur before TP.
USDJPY (SELL LIMIT): Suggested entry 118.20- 118.50. [email protected][email protected] Expected pull back upward may occur before TP.
NZDCAD (SELL LIMIT): Suggested entry 93.20 – 93.50. [email protected] Expected pull back upward may occur before TP.
GBPJPY (SELL LIMIT): Suggested entry 171.20 -172.84. [email protected][email protected] Expected pull back upward may occur before TP.
Visit our website www.kardsfx.com or Ikeja office (2nd Floor. 67 Obafemi Awolowo Way. Opposite Olowu Bus Stop) for more assistance on your account opening, book for your training in advance. Office opens January 4, 2016. Call 01-3429029, 08039391041, 08175779980 or send a mail for details as well to [email protected] or [email protected]
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