19 November 2009

Three strategies for breakthrough

Strategy breakthrough - one of the most popular methods of online trading currency among Forex traders. Breakthrough in the following way: you expect the strengthening of prices in a narrow fluctuation band established and in position when the price breaks this limit.Given above said, can use three strategies:

1. Consolidation prices. This is the simplest form of trading using a breakthrough, because its use does not require any technical indicators. You need to wait for the period of low volatility when the price is in a very narrow margin of fluctuation. You buy a currency if it breaks upward price, and sell if the price is quite the opposite.

2. Linear Bollinger. Linear Bollinger are an effective tool to identify breakouts. All you need to do is to follow the upper two lines until they begin to converge, and one of them does not intersect, and then take a position.

3. Exponential moving average. This strategy involves the use of exponential moving averages, namely, 5, 20, 50 and 200 between essays. Wait for the convergence of these indicators, and short essays, and take up a position in accordance with the direction of the breakout.



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