One of the simplest ways for trade selection and execution is the utilization of channels. Its relatively easy and maybe that's the problem. People generally want complicated methods and I am yet to understand why?
This system uses phycological levels/ numbers. These are areas of great interest for a majority of people. The round number I have always believed is how we humans relate to numbers. If I ask you what is your age, you're unlikely to tell me I am 23,3 years old. We generally round down or up. So I have found that the market reacts in these areas.
When the market breakout of long-term channels, a new trend is established. This is far more simpler than attempting to pick tops and bottoms. Observe the NZDJPY chart that has been highlighted. Its now clear to see why the market is stuck where it is. The trader now has a more easier trade ideas.
This system uses phycological levels/ numbers. These are areas of great interest for a majority of people. The round number I have always believed is how we humans relate to numbers. If I ask you what is your age, you're unlikely to tell me I am 23,3 years old. We generally round down or up. So I have found that the market reacts in these areas.
When the market breakout of long-term channels, a new trend is established. This is far more simpler than attempting to pick tops and bottoms. Observe the NZDJPY chart that has been highlighted. Its now clear to see why the market is stuck where it is. The trader now has a more easier trade ideas.
