This section presents important forex exit strategies. The strategies rely on so-called forex technical analysis. In other words, they based on the behavior of the underlying currency pairs and dot include economic aspects involved in the dynamics of the currency pairs such as trade, capital flows, interest rates, inflation, unemployment and other parameters by which the country’s economics is usually characterized. Although, all these items, as well as the current economic news are important, they are subject of a (possibly long term) fundamental analysis which lies outside the subject of this chapter. This section presents a collection of simple forex exit strategies suitable for skilled beginners of forex and intermediate players.
Note that the majority of the forex strategies are based on smoothing the price curve (suppressing the market noise) and evaluating how far and how fast the price rises or falls with regard to this averaged curve. Based on this averaged curve the strategy can be supplemented with offsets or even some thresholds such as the Support and Resistance which define where you exit your trade (Resistance based Stop-Loss). The trader also may define how long he/she would like to stay in the trade. (Timed Stop Forex Strategy) or even exit when the volatility of the market comes back(Exit by Dissolution of Entry Criteria).
Top Forex Brokers Reviews here