Trading Systems based on ECN Volume Tool

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Trading Systems based on ECN Volume Tool

Postby admin » Wed Nov 11, 2009 6:05 pm

If the number of Bids exceeds the number of Offers by at least a two to one margin, you should open short position. The limit of such position should be at least 5 -10 pips, and stop about 30 pips - 100 pips

It would be better to use currency pairs with small spreads, for example, EUR/CHF, EUR/USD etc.

It is quite possible to find two-three good imbalances during one day, maybe more. I mean such imbalances, which will exist more than one minute, and the imbalance will be confirmed by price action. But you can’t fully trust to any method or indicator, so the use of stops and limits is necessary and obligatory. That’s why ten-twenty pips are quite enough for scalping, as you only need to find a “loophole” to start trading.

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