You would most likely have heard of buying dips in an uptrend and selling rebounds in a downtrend. That is retracement trading.
If price has been trending up for a while but is currently moving downwards, should you buy? Price momentum is against you and it could be a reversal of trend.
What are Retracements and how should we trade them?
Retracements are temporary reversal in the direction of price that takes place within a larger trend.
FX Retracement Radar helps you solve this problem which all traders faced by identifying price retracements and alerting you only when prices resume movement in their original trending direction. In addition, it grades retracements by the remaining strength of the trend and the current momentum of price.
Now that you understand how FX Retracement Radar generates signals, let us go through the components in the dashboard interface and what they meant.
The Timeframes are listed at the top horizontal column and the Pairs are listed in the left vertical column.
The symbols and boxes in the dashboard means:
So what is the difference between a Strong and Weak Buy/Sell?
Strong Buy
Price is trending upwards. The uptrend is strong and/or the trend has just started. The momentum of price moving upwards is increasing.
Downward retracement has just finished and price is resuming upward movement in the original trending direction.
You should enter long now, placing your stop just below the last swing low. Be aggressive in placing your take profit level as the price is likely to continue trending strongly upwards.
Weak Buy
Price is trending upwards. However the uptrend is weakening. Price is moving upwards with decreasing momentum.
Downward retracement has just finished and price is resuming upward movement in the original trending direction.
You could enter long now, placing your stop just below the last swing low. Be conservative in placing your take profit level as the price although trending upwards, is losing momentum.
Strong Sell
Price is trending downwards. The downtrend is strong and/or the trend has just started. The momentum of price moving downwards is increasing.
Upward retracement has just finished and price is resuming downward movement in the original trending direction.
You should enter short now, placing your stop just above the last swing high. Be aggressive in placing your take profit level as the price is likely to continue trending strongly downwards.
Weak Sell
Price is trending downwards. However the downtrend is weakening. Price is moving downwards with decreasing momentum.
Upward retracement has just finished and price is resuming downward movement in the original trending direction.
You could enter short now, placing your stop just above the last swing high. Be conservative in placing your take profit level as the price although trending downwards, is losing momentum.
No Signal
No retracement signal. Do nothing.
Where to set Stop Losses?
Stop Loss level for retracement trades should be set at the last swing high/low as depicted in Figure 15. It is likely that the level is at a support/resistance zone. That is also the point where price ended the retracement.
If price breaks the stop loss level, it is likely that the trend has ended and there is a reversal in place.
Email Alert
In addition to watching the dashboard, FX Retracement Radar provides Email alert for the desktop version. The program will email you immediately when there are new signals. You will only need to monitor your mailbox to trade!
Pop-up Window Alert
The pop-up window alert is similar to the Email alert. On new signals, the program will display a pop-up window on your screen. You can be working on other things and be alerted immediately when new signals arise.
- What is FX Retracement Radar?
- How to use FX Retracement Radar?
- How is Retracement determined?
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FX RETRACEMENT RADAR (Lite)
$29.99
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FX RETRACEMENT RADAR (Pro)
$59.99
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