your dealing spread is covered and you are in profit.
5. The market spends most of its time in trading ranges or consolidation channels. You need to accept that this is a characteristic of day trading and adjust your mindset accordingly. Identify the high and low of the trading channel and manage your trades accordingly.
6. After identifying a trading channel or range and you see a trading opportunity, set your entry level at the base of the channel if you are going long or at the top of the channel if you are going short.
Don't chase after price once it breaks out of the channel (although many who engage in day trading do so). You will not get the optimal entry point. Waiting for price to take you in either at the top or bottom of the channel means you can have a smaller stop and your price target is closer.
7. Pay particular attention to the previous day's high and low. Price will often hesitate and retrace at these levels. If you are a day trading scalper, you can often grab a nice pull back of 10 pips or more at these strategic levels.
Note: Although there are various ways to calculate the previous 24 hour period depending on where you live, using GMT as a standard is often beneficial. Midnight GMT is a time when the market is generally very quiet and unlikely to make new highs or lows.
Succeed Or Fail?
It is unlikely you will succeed at day trading if you fail to understand or take into consideration support and resistance. This indicator is that crucial! Yes there may be fancy indicators out there with all the bells and whistles, but this simple indicator, marking where price reached a high or low during previous trading sessions, can be one of the most powerful and effective day trading tools available.
Be sure you spend sufficient time studying it, examining your charts, marking off the key levels each time you begin a new day trading session.
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