When you are trading in Forex, you will often get the opposite. It’s actually quite common for what you think is the perfect entry timing to actually go in the opposite direction. What is the reason for this?
Why does it move in the opposite direction when entering?
It’s not uncommon for you to enter at the timing you think is perfect, but when you wait, it’s a straight line in the opposite direction, isn’t it? This is for the following reasons.
trade contrarian
Contrary trading is a common practice among Japanese traders. When there is a trend, I think it’s about time to reverse it, so I go against it, but there are many cases where it doesn’t go well and the unrealized loss swells. This is a contrarian at a time when the trend has not yet ended.
Trade for value
Isn’t there going to be a backlash soon? There are a lot of cases where you think and do contrarian. This is a phenomenon that happens because you are doing contrarian at the stage where there is no evidence in the first place. This phenomenon is especially common for novice traders who are just starting out.
jump on the trend
There are traders who jump on the bandwagon and aim for a straight line when the trend is out. However, in this case, it would be nice if the trend was very strong, but there are many cases where there is a loss due to the reversal. It’s late to enter after the trend comes out. The entry will not go well unless it is set before the trend emerges.
range market
If you get stuck in a range market, even if you enter, the forward order is temporary and will come back. And since the range continues all the time, it will go back and forth between unrealized losses and unrealized gains. This is bad timing, so it is better to re-enter after the range market continues for a while.
When is the best time to enter?
When is the best time to enter? That should be the story. To do that, you need to know the market trends. Markets will generally contract, diverge, and move in direction. After the directionality comes out, it will return to contraction again. The best entry timing for traders is at the point of contraction to spread. It is best to enter by predicting whether it will go up or down at this timing.
contraction
A contraction indicates a market that has no direction at all. what is called a range. The chart below does just that. A deflated market goes back and forth all the time. This timing is the time to accumulate for the next trend. At this timing, traders should predict the direction of the next trend and buy or sell.
Source : Tradingview
diffusion
After the contraction period is over, the price movement gradually begins to become rough. You will be able to have a big beard. Many traders enter at this timing. Of course, you will enter whether to buy or sell and wait for the trend to come out.
Source : Tradingview
direction
When the price movement becomes rough, the next direction comes out. Of course, no one knows whether it will go up or down. Traders must enter at the time of contraction or spread. This is because the initial movement of the trend is where the price range is the most delicious. If you can get here, you can get a big price range and it will be a big profit.
Source : Tradingview
Exness is for scalping
Exness is for scalping. This is because the spread is extremely narrow. Therefore, if you like scalping, please register with Exness and start trading. Since opening an account is free, please refer to the following article to open an account.
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