How to make money on high volatility

How to make money on high volatility

How to make money on high volatility

Some traders are afraid to trade during high volatility, missing out on the profits that go straight to their hands. However, it is worse when they start playing roulette, just trying to guess the direction of the price movement. In this article, you will learn how to trade profitably in conditions of frenzied volatility, with minimal risk of a Deposit.

The success of our trade depends on the Forex giants: they push the price up or down, increasing market volatility, draining the Deposit of other traders or increasing it at times. However, any major player can't go unnoticed. How do we make sure that their tracks lead us to profit? How to stay on the wave of high volatility and not become a victim of currency market sharks? If you want to know the answers to these questions, see my open webinar on using exchange volumes in scalping.
After spending just an hour of your time, you will learn how to unravel the interests of major players and how to make money on news using exchange volumes, as well as get a clear algorithm for profitable trading on and against the trend – even in an unstable market.

A visual analysis of my trades will help you understand how to make money on high market volatility, minimally risking the state of your trading account.

The past trading week was a luxurious one from the point of view of trading. The market was pleasantly surprised by the volatility, and for an experienced trader, this is a great opportunity to increase your Deposit. The GBPUSD currency pair was the most pleasing. The rapid drop in the price by more than 250 points brought a good increase to the account in monetary terms. There was also a profitable trade on the EURUSD pair, but in this review I want to stop and look in more detail at the deals on the pound/dollar pair.

Everyone knows that parliamentary elections were held in the UK on Thursday. And for most traders, such a significant event was the reason to "sit on the fence" and wait out this news – that is, to completely abandon trading on this instrument in the near future, since significant price fluctuations were expected in the market. The uninitiated trader did not know which way these price swings would turn.

Those who tried to play roulette, that is, randomly enter the market on such news, most likely suffered serious losses, and maybe even "merged" the entire Deposit. The price showed an uptrend, there were no prerequisites for a decline in the British currency-the same scenario as before Brexit. Most likely, this is the reason why most traders decided to "stand on the sidelines" and act as passive observers.

However, there were also those who figured out the manipulations of major players in time and managed to make money on such a frenzied volatility. I can safely refer myself to this number of traders. The reason for all this is the VSA 2.0 trading system, namely, a clear understanding of the subtle game of large market sharks.

In the review, I will present only some points that helped me understand that the market expects a good decline in the pound / dollar pair. The rest of the secrets can be found in my webinar, where I will review not only GBPUSD trades, but also make a full analysis of the main currency pairs.

On June 6, a large seller began to enter the market, which showed itself at the moment of an impulse downward movement on a large volume (see Fig. 1, number1). After that, the price resumed its upward movement. The next day, June 7, a large seller again showed itself on the rising bar, because it was not followed by a continuation of the price increase (figure 2). On the contrary, at the increased volume, the price stopped and fell on two impulse candles (TF M30). Even then, I knew that a major player is preparing for a good fall, and there was another significant hint, but about it-at the webinar on June 15.

The next day, after the formation of the "Double top" candle pattern, I decided to open a short position on the GBP / USD currency pair (figure 3). After a significant decline in the exchange rate, I moved the trade to breakeven. As you can see from Fig. 1, the price caught my stop.
I immediately decided to re-open the sale (figure 2, figure 1). At the same time, the stop order was placed above the price peak of the current trading session, and the order to close the transaction was placed at the price level of 1.2675.
Naturally, I couldn't fall asleep without watching the result of my deal: I waited for the movement to start in my direction, which happened around 0.00 Moscow time. A little later, I decided to open two additional sales deals (Fig. 3). At the same time, I clearly knew the goal where to put Take Profit orders. As you can see from figure 3, all open orders were closed by take profit
However, the story with the GBPUSD pair did not end there. And the thing is that if I clearly knew where to set the take profit, it would be stupid not to take advantage of the opportunity and buy a pair with the expectation of a corrective movement, which was done (Fig. 4). I bought at 1.2675 (1) with a short target of 1.2735(2). As you can see, the price has gone even higher, but in cases of opening transactions against the main trend, you should not be greedy, since a potentially profitable transaction can quickly turn into a loss-making one.
As a result, in just less than 24 hours, the GBPUSD currency pair brought me a profit exceeding 450 points.
As you can see, you should not be afraid of high volatility – this is a great opportunity to earn money. The main thing is to act in accordance with the rules of the strategy, which is able to give maximum profit even in an unstable market, as well as a clear understanding of the tricky game of major players in the Forex market. To understand all these nuances, sign up for a special training course "VSA analysis 2.0".

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