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Monday, February 18, 2008

Do not trade Range when spread > peak-to-peak amplitude

Below is an example when you should not enter a Range trade:


Always check the Spread before entering a trade. In the above case, the spread for CHF-JPY is 4 pips - which is larger than the peak-to-peak amplitude of the Bollinger band. It is impossible to profit. In such a case, just be patient and wait for:

1. the Spread to decrease
2. the peak-to-peak amplitude to increase (meaning higher liquidity)
3. the Spread to be < the peak-to-peak amplitude

1 comment:

Blog27999 said...

In this fashion my associate Wesley Virgin's autobiography begins in this shocking and controversial VIDEO.

As a matter of fact, Wesley was in the military-and shortly after leaving-he found hidden, "SELF MIND CONTROL" secrets that the CIA and others used to get anything they want.

THESE are the EXACT same secrets lots of celebrities (notably those who "became famous out of nothing") and the greatest business people used to become rich and successful.

You probably know how you only use 10% of your brain.

That's because most of your brainpower is UNCONSCIOUS.

Maybe that conversation has even occurred INSIDE OF YOUR very own head... as it did in my good friend Wesley Virgin's head about 7 years ago, while driving an unregistered, trash bucket of a car without a license and with $3.20 on his debit card.

"I'm so fed up with going through life check to check! When will I get my big break?"

You've been a part of those those types of conversations, ain't it so?

Your own success story is going to happen. Go and take a leap of faith in YOURSELF.

WATCH WESLEY SPEAK NOW