Forex Trading Resources

Let’s continue our discussion of congestion action trading in the article series about technical analysis explained.

We cannot exit congestion until we have a new trend run . Congestion occurs if there is no trend run . When a trend run occurs this is a congestion exit as put into place by the congestion action that proceeded it..

So, let’s say this again with a little different emphasis .

There are two things that we can say congestion action does .

One: It creates strong original confines .

In the second place, strong expanded confines are created .

The original confines are created by the congestion entrance bar , which happens to be the first bar of congestion action, and the second bar of action, which is the next bar , and the third bar if there is no trend run . The confines are determined by the lowest low and the highest high of these bars , as defined by dotted line and block level . These are the congestion original confines .

Here is should be brought to your attention that in congestion the third bar price , does one of two things . Price either:

1) Starts a trend run and exits congestion, since the third bar closing on the other side of the PL dot isn’t confirmation of congestion action. The congestion confines are then determined by the original confines , . OR…

2) The close happens on the other side of the Pl dot, and congestion action is continued . The confines of congestion in this case are determined by original congestion, as is set out by the lowest low and highest high of the very first three bars.

Now, what about expanded confines?

Well, congestion action can create expanded confines by moving out of any confines of congestion like original confines , as long as a trend run hasn’t occurring during this time. When price leaves the latest confines, the confines of congestion are then redefined. After this point , then instead of dealing with the original confines in congestion exit, the redefined confines is dealt with.

( You should definite note, that price can be affected by the original confines , because any level or line is able to do so, but most of the time, the true confines can be built through repetitive congestion action , without a trend run showing up.)

The confines can be expanded as long as no trend run occurs . Only when congestion is exited and price is in a trend run can we really say that the congestions final boundaries have been defined .

If you look at Drummond Geometry, technical analysis explained defines congestion in a clear and consistent manner , and gives us a framework that we can work with in identifying the confines of congestion under any circumstance .

In future discussions in our technical analysis explained series we will talk about trade entries and exits in congestions . These clear congestion definitions will definitely become useful .

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Even though they don’t have enough knowledge of the entire business, practically everyone can become a Forex trader with the available Forex robots these days. Although for the most part this is true, getting a knowledge of one or two basics of Forex trading, especially the Forex autopilot parameters, is still a great advantage.

In order to be more competent in the business, anyone intending to get involved in the Forex trading needs to know these parameters that the robots have. Besides it, it is always better to know these things than always be lost in the playing and guessing game. So, what are these parameters that are being talked about in the Forex trading industry?

Your autopilot is more likely to come with a good number of these parameters. But with the many parameters that you will encounter to work with as you start taking advantage of the system for your trading decisions are important that you get basic knowledge of. Otherwise, maximum advantage would be impossible if you depend entirely on the robot to work for you.

One of these is the commodity, the product type that you are going to use for your trades. Currency pair, stock index, stocks, futures, or gold spots are the types of the commodity. Lot is another, not that one referring to real estate business, but refers to the quantity you will place on your Forex trades.

While the volume, on the other hand, need not make you confused whether it is the lowness or highness of a sound but rather the number of transactions that were made at a specific given time. And the applicable actions for the parameters such as the sell stop, sell limit, buy stop, and buy limit refer to another parameter, the type.

You will also get to know the term momentum, which refers to the measurement or unit of how strong that the price movement becomes. Or the volatility, which on the other hand, refers to the measurement of the number of times that the price is changing at a given amount of time. And of course, the particular parameter, called trend, is the direction of movement of the Forex price. Trend can also refer to these other things: ranges, inner volatility, starting point, and ending point.

One parameter that cannot be easily identified as it is not visible on the chart but you will encounter as it is part of the technical existence of the Forex market is called the trader’s expectation.

The stop loss and take profit are perhaps two Forex autopilot parameters you will be more keen to learn about. Stop loss is what the traders use when it comes to delimiting the chances of trade losing. When you use this, you are setting a certain level, rate and price at which the system automatically initiates selling or buying as the market reaches their set limits. Take profit, on the one hand, allows the system to automatically stop the trading once the limit at which you set the limit orders or obtain profit is reached by the market.

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