Tuesday, December 12, 2006

Using price intervals

The price intervals formed on the bar diagrams can also be used for choosing the best moment for opening or closing the positions. For example, the intervals formed at price rising very often then play the role of the support levels. That’s why at the ascending tendency it is reasonable to open long positions at price dropping up to the upper interval’s border or a bit lower, inside it. The stop-order can be placed below the interval. At the descending tendency the short position is opened at the moment when the prices go up to the lower interval’s border or even partially fill it. In this case the safety stop-order is placed above the interval.

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