increasing profit on average earnings

increasing profit on average earnings

increasing profit on average earnings

Today you will learn about a universal method with which you can profitably trade both within the medium-term trade and within the day. This strategy allows you to use even such a disadvantage as market inefficiency in your favor. Ready? Then we begin.

In today's article, we will analyze the use of trading volumes in the VSA 2.0 strategy. Let me remind you that the strategy is adapted for both intraday and medium-term trading. Due to the exchange volumes and their correct interpretation relative to the price, the trader has a lot of opportunities to open high-quality transactions. In this article, I will analyze a few of my medium-term deals, which in the future can bring a fairly good profit.

Let's start with the EURUSD currency pair. Probably everyone knows that on Friday, August 4, 2017, data on unemployment in the United States was published. Analysts predicted another collapse for the dollar, expecting the release of negative data. However, contrary to their expectations and forecasts, the statistics turned out to be positive, and the US dollar strengthened "on all fronts". A little earlier, on August 2, I opened a sale on EURUSD (figure 1), but the next day, for objective reasons, I decided to close 50% of the position (1) and move the stop loss to the breakeven level (2). As you can see from the figure, my position was eventually "knocked out".

And now more about this very "objective reason" – we are talking about the option analysis, which gave a hint that the price may go higher. Option analysis complements the VSA 2.0 trading strategy very well, since the futures market, from which data on exchange volumes are received in the MT4 terminal, is closely linked to the options market.
On Friday, after the release of US data, the Euro began to weaken against the dollar. I sold Euro (1) (see figure 2). Before making a decision to open another sell position, I conducted an analysis: the market clearly read the fall in the EURUSD currency pair. This is not often the case in the market, but on Friday there was an inefficiency in the market, which inquisitive and observant traders, I think, noticed. If you didn't see it, don't worry – learn more about it at the webinar (details below).

Then on Monday, August 7, the EURUSD currency pair returned to the test of a significant resistance level, and I decided to open an additional sale
Regarding the goals: I expect the price of the EURUSD currency pair to decrease to the level of 1.1500, where I will at least partially fix sales . And then we'll see.
If the market continues to show the weakness of the Euro against the dollar, then the profit targets may shift lower, up to 1.1200, from the current price – this is more than 500 points of profit.

In addition, when breaking through and fixing below significant levels, I will open additional sales deals. As a result, as the position volume decreases, it may increase several times. This method of "topping up" is used by many experienced traders, but you should also understand that the price can change its direction, and the main thing here is not to become a hostage to your idea and react in time, i.e. close all positions.

Today, while everything remains unchanged, I expect the dollar to strengthen not only against the Euro, but also against all other currencies.

The next trade is a counter – trend one (see figure 4). The entry point is formed at a strong support level. The risk-profit ratio was initially set at 1 to 3, but later I decided to close the trade when the nearest resistance level was reached.

When trading against the trend, you should be very careful and not be greedy, as a profitable trade can quickly become unprofitable. However, strong price levels, determined by the VSA 2.0 trading strategy, in 85% of cases give a reaction and allow you to earn with minimal risks.
Do you want to learn how to analyze the market correctly? Then watch our webinar to increase your trading efficiency in just one hour thanks to option volumes!

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