|Welcome to currency trading with Profiforex!
|A necessary condition for success is to trade on the timeframe, where the average price movement in the trend is not less than10 spreads of your currency pair.|
For the euro,it is 20 pips.
|We will need two indicators for trading with the impulse system: the moving average and MACD.To apply the moving average to the chart, press the "Indicators" button and choose "Trend" - "Moving Average."|
|In the settings, select the Exponential method and any large averaging period.|
|To apply MACD to the chart, press the "Indicators" button on the toolbar and choose "Oscillators" - "MACD."|
|The moving average helps to identify the phase of the trend.When the moving average is below the chart and is rising, we assume the presence of a bullish trend.|
|If the moving average is above the chart and is falling, there is a bearish trend.|
|The MACD indicator is used to estimate the speed of changes.If the MACD histogram is above the signal line, it indicates a good speed of growth.
If the MACD histogram is above the signal line, it indicates a good speed of growth.
|The deal is closed when one of the indicators stops giving a buy signal.|
In other words, any "noise" that doesn't necessarily mean a change in the trend can knock you out of the market.
This is why this strategy won't allow you to take more than fifteen to twenty-five percent of the trend. Nevertheless, the strategy is reliable and unpretentious if it's used correctly.Mr. Elder also states that it's necessary to filter signals in accordance with the triple-screen system, as discussed in a previous video.Thus it becomes possible to open the deal only after identifying the direction of the trend on a larger timeframe.
The impulse trading system requires care in opening the positions, and one must close positions quickly. Such a professional approach to trading is totally opposite to the style of a non-professional.The beginner will usually open deals without thorough analysis and endlessly postpone closing them in the hope that the market will turn toward a favorable direction. The results of such trading are obvious. It should also be noted that methods of Alexander Elder aren't just a mechanical approach but are more likely the method of trading on the exchange.This is as if one is trying to find islands of order in an ocean of chaos. The moments when the crowd that is disorganized most of the time falls under the influence of a powerful trend, all will rush in one direction.
The impulse trading system requires a high level of self-discipline, because it isn't easy to give an instruction to the broker when the market is already running. It's even harder to close a profitable position without waiting for a trend reversal.
Never feel sorry that you've closed the deals before the trend reached its end. Never use this system if you tend to show a lack of self-discipline.