This technique uses a technique averages simultaneously. Only suitable forcurrencies that have a daily range was too large and stable. Example: GBP /USD, EUR / USD, USD / CHF, USD / JPY. Ideally the pair used also has asmall spread and combined with a broker that features a robot trading (EA)
Double Impact basis of this technique is the principle of balance of force in the universe, as if there is a good example of bad there, the day and night, the menand women. Likewise in the forex, if there is an increase of course there is a decrease, probably not a trending market (bullish) will remain so up and vice versa if bearish, at some point it will turn around.
This is also due to fear (fear) of the human (trader), so if they Long (Buy) andhave gained certain advantages that are considered sufficient, then they tend tosell out of fear when the price back down (loss). In addition, many other factorsthat affect, for example, news / news (fundamental analysis), predictiveindicators (technical analysys), pivot points, and others.
Factors you should consider in using this technique is forex are:
Currency you use MUST have High-Low Daily Range is not too large andstable.
Example: GBP / USD, EUR / USD, USD / CHF, USD / JPY
Number of lots that you use and your capital adequacy
Make sure you understand well the calculation of leverage, margin, and capital strength you have.
If there is an important News related to the currency traded, you should be morecareful or close a position before the news was announced (or even no tradingon that day).
Example: When you trade GBP / USD then have to be careful with the news of U.S. and UK (England).
If you are a beginner and want to know the schedule of important news from themarkets worldwide,
Posted in: News,Tutorial
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