Averaging strategy.

Trend movement is a curved line in which segments in the direction of the main trend are trend movements, and segments in the opposite direction are corrections.

It is this feature of the trend that formed the basis of the averaging strategy on Forex; it is quite simple, like most effective trading systems.

The averaging strategy consists of opening additional positions when a trend correction is detected and thus obtaining additional profit.

For greater efficiency and to eliminate errors, this trading option uses both technical and fundamental analysis.

To apply the strategy, follow these steps:

1. Determine the source of fundamental information. This could be news from the Dow Jones news agency, which is available free of charge from the Alpari . When planning trades, use the economic calendar .

2. Install a trend indicator on the chart; Ultra Wizard ; it fully supports the averaging strategy.

3. Determine the volumes: your funds should be sufficient to support three open positions, taking into account leverage.

4. Plan the first trade: Using the Ultra Wizard indicator, determine the current trend direction. Check the economic calendar for upcoming news. If no important news is scheduled for the currency pair in the near future, open the trade.

4. Perform averaging: if the price moves against the existing trend, first check the Dow Jones news feed after the Ultra Wizard indicator shows. If there is no important news and the indicator does not indicate a reversal, wait for the price to move back in the direction of the trend and open a second trade.

5. Closing a position - if, after checking the indicator readings and the news feed, it turns out that a trend reversal , the first position is closed despite the losses.

Additional points.

• Subsequent transactions are opened if the offered price has become more favorable than the one at which the previous position was opened. For example, you opened a buy transaction at a price of 1.2500, after some time there was a correction on Forex and the price became 1.2460, then it began to rise again and it reached 1.2470 - this is where the second transaction is opened. In this case, you get a chance to earn an additional 30 pips.

• The averaging strategy is designed for trading on short and medium time frames.

• To quickly close all orders, you can use the " Closing all orders " script.

• Additional information on this topic can be obtained in the article " Averaging on Forex ".