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Bargain Hunting with Price Action - trading forex

Publié par Unknown lundi 16 mai 2011



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Chapter 6 introduced you to bargain hunting along the edge of price
by using the daily high or low as an entry point within a trend defined
by a moving average. This strategy works well when the high or low
entry zone is near the moving average, but it often breaks down as the
market begins to swing from one trend into another. In this chapter you will
learn a bargain-hunting method that takes advantage of short-term price
swings, regardless of trend. This methodology builds on what you already
know about identifying bargain days and introduces an approach to trading
them that is more responsive to the most recent price action.
This chapter introduces you to an indicator called a Hull moving average.
You’ll learn to use this indicator as a guide to identify bargain days
based on price action. You’ll learn how to manage risk and identify profit
targets using this strategy. Finally, we will walk through several example
trades to solidify your understanding.
I have taught this strategy to traders around the world and I still trade it
myself whenever I see a good bargain opportunity. If I had to pick, bargain
hunting with price action and a Hull moving average is probably my favorite
method to trade the spot currency market.


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