Forex Blog

How To Trade Price Compression and Make Fast Gains

July 16, 2020 | 10:13 am | Forex Blog
July 16, 2020 | 10:13 am
Forex Blog
How To Trade Price Compression and Make Fast Gains

Trading the Price Compression

Compression is a peculiar movement in the market that you better learn to recognize. After compression formations, there are great opportunities for making quick profits in the market. This article is divided into two parts. In the first part, we will learn how the recognize price compression and in the second one, we will discuss how to trade it and take advantage of it.

What is Price Compression and What Causes It

In this video, we´ll explain compression in trading what is it and what causes price compression, as well as to demonstrate how to identify it.

Trading Compression – the compression is a price movement that indicates the weakness of the buyers or the sellers. Price compression is a very slow price movement that indicates weakness on buying and selling orders.
By this type of movement, the price collects all pending orders on its way up or down and leaves no unfilled orders behind it.
Compression is usually defined by small and messy candles that move up or down in a very tight range.

 

 

Undercover the Most Important Principle When Trading Price Compression

In this video, we will undercover the most important principle when trading price compression: To trade in the opposite direction.

We´ll learn how to combine support and resistance levels to build a successful strategy around it. Also, what to do if you find yourself inside a compression… Take profits?, Trail your stop? Think about the advantages of riding the sharp movement that comes after compression: very quick you are in profits, so mentally is easier to let the trade run longer.

 

 

Price Compression the bottom line

Trading price compression formations is something every forex trader needs to know. Remember to adapt in case you find yourself inside price compression. Combine this with support and resistance and your own personal touch to trade against a compression formation for fast movements.

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