Forex Market

[victor]

I understand it when people talk about buying in the dips and selling at the highs, but how do you bring it all together in the market to find an entry point and I am specifically referring to the forex market ?

 

[c6ackp]

Hi Victor

When a currency pair is trending the price normally moves in a ratchet fashion. This is (partly) due to the 1000's of market particpants who all have different strategies (and/or different perspective or trading timeframe) in order to squeeze money from the market.

Attached is an example of a nicely trending GBP/USD this morning (5min chart). I've annotated the chart showing the "DIPS". These points *may* be safe entry points. But I'm sure you are aware that all features become black & white when looking at historical charts! Being able to see the safe entry points in real-time requires more practice.

Similarly, in a down trending market you could sell the "highs" for a safe entry.

HTH
Steve

 

[john666]

I understand it when people talk about buying in the dips and selling at the highs, but how do you bring it all together in the market to find an entry point and I am specifically referring to the forex market ?

You are already half way there when understanding this concept, so all that is left I to identify these area within a trend, and finding a suitable entry. One can typically use some overbought/sold indicators or basic Fib analysis. I got some good tips to this regard by looking at www.forextraderengland.com

 

[donaldduke]

You can use trendlines,oversold/over bought indicators,s/r levels and fib levels etc

But I think the most import point about this entry strategy is that you dont buy or sell until the Price has
confirmed the bottom/top.
So if want to buy a dip wait then wait for the market to hit the area you think will be low point and turn back
up. This will prevent you from catching a falling knife/standing infront of a freight train.

I personally prefer buying strength and selling weakness. But you can be sucessful eitherway.