Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
strategies<br />
trading day. These trading decisions F1) The Cable Gains Stamina<br />
can have impact on our financial<br />
welfare: Therefore we want to be<br />
sure that we are making rational<br />
decisions as intraday traders.<br />
We have always been fascinated<br />
by the lines of the least resistance<br />
and ways of pinpointing them early.<br />
You probably know that there are no<br />
guarantees in the markets, but there<br />
are stages of breakthroughs in the<br />
trading career of serious traders.<br />
On January 17, 2014, the Cable experienced a new lease of energy and crossed the Snake Line to the upside.<br />
Experience has shown that hard A long order was immediately initiated at 1.6348. The stop was put around the EMA 60 which was 1.6337<br />
trading methods do not necessarily (eleven pips from the entry price). The take profit was set at 1.6370 (22 pips from the entry price). The target<br />
was hit immediately and within 15 minutes the price shot upwards by over 90 pips.<br />
assist traders to achieve their goals.<br />
Source: www.metaquotes.com<br />
Easy cum effective strategies are<br />
what can help traders. Therefore,<br />
there is always a need to stay with<br />
a short-term market propensity with deftness. You see, pullbacks in the market, but it would affirm the ‘going<br />
going with the lines of the least resistance is not only the up’ with further northwards push. The northward push<br />
best trading method; it is also the most helpful. There is has some factors behind it. Some speculators are<br />
no need to go back to methods that do not bring lasting afraid of missing the northward push, while some who<br />
success, although going with the current biases would are already in the market would long for continuous<br />
not be profitable if it is not done the right ways. The northward push. The northward push would stop only<br />
Snake Line helps us trade the current biases more in an when too many speculators feel like the price has gone<br />
easy way.<br />
too far and could reverse. That is when a southward<br />
push may begin.<br />
Principles behind the Snake Line<br />
The Cable (GBP/USD) is the favourable currency<br />
The Snake Line consists of the EMAs 60 and 100. It acts trading instrument for this strategy since it tends to trend<br />
as a support zone in an uptrend and a resistance zone in a significantly more than most popular majors (except the<br />
downtrend. The Cable is above it in an uptrend and below EUR/JPY and the GBP/JPY). Its spread is comparatively<br />
it in a downtrend. Likewise, in an uptrend, the EMA 60 low – a good bargain for intraday traders. The Cable<br />
would be above the EMA 100. In a downtrend, the EMA 60 moves by over 90 pips during the American session. It<br />
would be below the EMA 100. The<br />
premise is that when a support zone<br />
or a resistance zone is challenged F2) The Cable Loses Stamina<br />
and violated by the price, the price<br />
would move significantly after it has<br />
crossed it to the other side. When the<br />
price is within or around the Snake<br />
Line, it shows an equilibrium phase<br />
in the market, and no trades would<br />
be taken.<br />
When the price goes up after<br />
some equilibrium zone, there would<br />
be bullish engulfing pattern candles<br />
or consistent bullish candles (at<br />
times, gap-ups). The price normally There was a bullish bias on the Cable on January 24, 2014. But suddenly, the price dropped like a stone,<br />
crossing the Snake Line to the downside and closing below it. A short order was immediately initiated.<br />
breaks the Snake Line upwards,<br />
Source: www.metaquotes.com<br />
although there may be negligible<br />
51
Change language