Day trading. When should stay out of the market?

Many online Forex traders prefer to conduct trades in short time frames such as 1 and 5 minute charts, but you will be hard to achieve ongoing revenue in this way. Because you have to engage in combat with all the confusion that occurs at these charts, when it seems that the price moves without any purpose at random.

Therefore, you must follow one rule, while driving in a short time trades under: never join the bidding, if the average directional movement index is below 20. This indicator shows the appearance of a trend, and if it is below 20, it means that the trend has not yet appeared in the online forex trading currency market.

Thus, you can immediately decide to start bidding or not. Of course, if the average directional movement index below 20, still stands watch over a given currency pair, as well as its rise above 20 may signal the start of a new trend, especially if the directional movement indicators intersect at the same time.

Index average directional movement - this is a very useful indicator. It not only signals the absence of trends in the market, but also helps to find the optimum point for closing the position. In this case, you need to close the position if the index is the average directional movement begins to move down, especially if prior to that he was at 40 or 50.