Forex encyclopedia

On the Forex market 2 groups of participants can be conditionally distinguished. Big participants are those making transactions of large volumes. First of all this group includes commercial banks, Central Banks, market makers and funds – able to operate with amounts of billion US dollars and thereby influencing market a lot.

According to this technique, you should increase the volume of your position if the financial market moves to the side, which is not opposite to your trade. This technique suits strategies that based on the turn of price. The initial price movement is against an open position but then price moves to the proper direction and a trader closes the trade with profit. The drawdown support is the exact antithesis of the Maximum Favorable Excursion method.