To a really great extent, the forex market can be said to be unpredictable. There are a lot of different ways to trade the market, some of which are profitable and some of which are not. It is left for the trader to find out the most profitable ways to trade and apply them to their trades. This is what the forex scan is used for; it recognizes, select, enters, and exit trade setups with the best odds and rewards to risk.
This forex scanner is just a tool, and for it to be able to recognize winning trade setups, it has to be programmed in a certain way; and the trader has to be aware of helpful tactics that can uncover high probability trade set ups.
RECOGNISING PROFITABLE TRADE SET UPS
There are a bunch of ways to recognize trade setups, they include
Waiting for the lines in the sand
Waiting for the action in the trigger
Decision spots versus trigger
DECISION SPOTS AND TRIGGER
At every moment of the day, there is new information about different currency pairs in the forex market. Some of the news has great tendency to influence the forex market more than others; spanning from a lot of different factors. This is one of the reasons no one has totally mastered the forex market. One can only be said to have mastered a strategy, not the whole of the forex market. With the constant change in the market come new opportunities on how to trade the market.
Like has been mentioned earlier, a lot of these opportunities/trade setups do are not as profitable as you may think. It is really rare to find one that can bring about good returns. As a result of this scarcity, traders are advised to be patient. Traders must wait for a certain pattern to occur and then execute their trades with discipline when the moment arrives.
WAITING FOR THE LINES IN THE SAND:
This is one of the ways to identify a profitable trade set up. In this method, the trader has to identify a decision spots, which is a key point to carry put a trade action. With the identification of these decision spots, the trader can easily ignore whatever comes in between knowing that something better and worthwhile is coming.
Once these key point spots present themselves, the trader can go ahead to trade and hope to make good profits.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.