Another Great Scalping Day!
Today, Chief Trader Armando Martinez takes an active position on the GBP/USD currency pair. He takes particular notice of PMDs in the 1-Minute and 5-Minute time frame on the FxPM™ Matrix. In the 1-Minute time frame, he points out that there is quite a bit of separation between PMDs, indicating that momentum favors the direction of his long position. In the 5-Minute time frame, the PMDs indicate a level of support at which he finds an ideal level to place a stop-loss. He adjusts it quickly, however, to a level at which there is a pink PMD in the 1-Minute time frame, as this level allows a -7 PIP stop-loss rather than a -20 PIP stop-loss. After some time, Armando finds himself up quite a bit and brings his stop-loss to breakeven, thereby eliminating risk. Once he sees that the gap between PMDs has condensed, he feels comfortable taking +10 PIPS on the trade! Learn how to generate consistent profits and emotion-free trading in the Forex market long-term with the FXST Trading System.
Filed under: Daily Learning Moment
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