How Experienced Forex Traders Capture Swing Rebounds and Improve Trading Skills

The rebound opportunity in the Forex market is difficult to grasp. The difficulty is that we don’t know whether it is a falling intermediate market or a reversal market after a decline. If it is a falling intermediate market, after we buy, we will face the risk of falling again, and may be deeply locked in. If it is a reversal market after bottoming, a strong rebound is no less than a wave of sub-intermediate market, and has a very high profit probability. Make full use of the rebound opportunities formed after the Forex market plummets, and you can earn huge profits.

There are two situations of rebounding: the first is to rebound from a weak point during a sharp drop, and the requirements for the buying point are very strict, because the rebound after the sharp drop is very short, and the opportunity is fleeting. Buying at a lower point is less risky, and the operation requires short and fast, fast in and fast out to close the position when the profit is made, which is very difficult Big, the second is to rebound in a band at the periodic bottom. This is relatively easy to do, but it requires accurate judgment of the market. If it is judged to be a band rebound, then the height of the rebound should be relatively high, and the profit target should also be relatively high. Once the judgment is wrong, the entire market will be trapped.

How to grasp the band rebound.

First, look at the candlestick. The candlestick represents the exchange rate. Looking at the candlestick is to conclude that the exchange rate will no longer fall. Decline and rebound are two trends with completely opposite directions. They must go through an area where long and short are relatively balanced. This will take a certain amount of time and will be reflected in the exchange rate. This is the form we often mention. The exchange rate will no longer fall, which will inevitably drive the short-term moving average from falling to flattening. This is the basis for the exchange rate rebound.

The second is to look at the moving average, generally the 5-day moving average. Once we see the 5-day moving average turning from falling to flat, we should pay close attention to it. At this time, other averages such as the 10-day moving average, the 20-day moving average, and the 30-day moving average are still moving downward. If the exchange rate breaks through the 10-day moving average on a certain day, it is basically certain that the band rebound has begun.

Buying and selling in Forex margin trading are relatively simple skills. Buying skills are the prerequisite for successful trading. Buying at a good price can allow you to occupy a good position, advance, attack, retreat and defend, which provides strong psychological support and room for maneuver for the subsequent development of other skills.

Selling skills are the closing of buying profits or the truncation of buying losses. This skill is more important than buying skills in certain circumstances. Skilled selling skills can effectively overcome the inherent weaknesses in human nature. It allows Forex traders to boldly expand profits when circumstances are favorable, and retreat to preserve strength under unfavorable circumstances.

In order to illustrate the importance of waiting for Forex traders, you can review the complete trading process: "Waiting to buy - buy - wait to sell - sell - wait to buy again." Before you completely exit the market, you will always cycle through this process. In terms of time, buying or selling is a point, and waiting is a line, a process.