In foreign exchange trading, closing a position means leaving the market, but closing a position does not mean failure. Sometimes it is for a better start. Closing a position also requires skill, especially it is not easy to grasp a good time to close a position. Today I will explain the foreign exchange liquidation techniques for everyone.
Many foreign exchange traders may have their own unique views on placing orders, but the final profit is not satisfactory. One of the most important reasons is that they are not sure of the timing of closing positions. Premature closing of positions often results in traders losing huge profits following market trends. Too much hesitation in closing the position may lead to a decline in the market and the loss of gains that can be obtained. It is difficult to grasp the timing of liquidation.
Although it is not easy to grasp the timing of foreign exchange liquidation, it is not impossible. Today, I will introduce two methods of closing positions.
First, the high-sell method. When a foreign exchange trader buys a currency, he sets a profitable target price for the purchased currency. Once the market exchange rate reaches this target price, traders will decisively close their positions. For the setting of the target price, traders can use analytical tools such as the golden section, moving average, and morphology to use a combination of fundamental and technical analysis.
The second method is the sub-top closing method. Traders do not need to set a target price for closing their positions in advance. Keep holding the position until the market exchange rate shows signs of peaking for the second time, then you can close the position. Foreign exchange traders who adopt this method of closing positions can use technical analysis to determine the signs of peak exchange rates, mainly using technical analysis to determine the shape and trend of market exchange rates. Traders can analyze the establishment and formation of the mid-term head through the double top, head and shoulder top and triple top in the trend, and then decisively close the position.