To earn a decent income and living with online trading is a dream for many. At the same time, it is important to know that trading online is really a challenging job online these days.
You will need to get proper training and understand concepts before you can dive in. This will help you save from possible losses.
Here are a few things you will need to understand before you trade online. Hopefully, it helps.
Reading OHLC chart
The full name is open high low close chart, where the close indicates the assets ultimately reach. It is indicated by a bar going to the right.
The open indicates where the assets initially started from and are given by a bar going to the left.
The high point is at the top of the bar where the assets will reach over the period.
The lowest point at the bottom of the bar, which shows the maximum fall in the price of assets over the same period. Reading an OHLC chart will help you to utilize the best trading strategy properly.
Three Consecutive Bar Trend
Here you need to locate three bars that follow the same trend. If three bars are going up, you use a call for it.
If three bars are going down, you use the word put it. As it is very important in life to know what will work for you and what won’t, similarly in the investment of money you should also know which pattern or trend is the best for you.
Based on my experiences of trading at MDX500 I can say that this will give you the maximum results.
The ABC trading
The next possible way to succeed is ABC trading. The basic aim of this strategy is to monitor market tendencies and profit. For example, you wish to locate an ABC call.
You need to look for a line that moves upwards and then downwards for a very short amount of time.
It is important because the next time this line will move upwards, it will keep going in the same direction for a significant amount of time, thereby helping you to locate where you should call for the asset.
Failures in trends
While you know how to locate a call or a put, which you should do in the opposite mechanism, you also have to know how to locate failures in order to avoid being misguided.
The best way to know this is by trying to look for specific patterns in the C point.
If the C point is seen to go lower or higher for a call or put than the previous C pattern, it is a clear sign of failure for that particular bar or line.