Following these tips in demo mode will mean you are learning something useful and passing the time without being tempted to hop into a real trade when the conditions are not right.
First it is important to test the currency exchange calendar. Are they converging? This could mean that a breakout is coming. You can place orders outside the range of the lines, a buy order in case the price breaks much above the lines, and a sell order in case in breaks below. Check 1 other indicator before acting.
On the other hand, if the SR lines are roughly parallel? If so , you can expect the market to turn when it reaches them. This may be a first signal for a short day trade. Use another suggestion to check for an oversold or overbought marker as a 2nd signal. Consider whether there are any other related currency pairs and if this is so take a look at what is happening with their prices. It is important to exit as fast as your profit target or stop loss is fired. So do not become distracted, but watch the market carefully. Forex currency trade strategies in a choppy market are always going to involve short term trading.
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