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Grid Trading – What is Grid Trading in Forex?

May 9, 2019 by Investor

What is Grid Trading?

Definition of Grid Trading: It can be explained as a Forex trading plan which is similar to the serial and scalping basis. It sets a sequence of different posts with close and open orders that are undertaken with a prearranged spread. When arranged on a diagram, it is regarded as a grid that is placed on the range of trading. The main aim is to locate an initial order post and then cover the grid over it. Once a person reaches the predetermined point, a fresh order is executed, whereas the earlier position is shut down. Stops must make an entry to the exposure of limit loss. As far as scalping is concerned, small profits are added with time. There are some traders who feel that the Forex plan performs in a better way in ranging the different markets as opposed by the trending markets. In such a case, the grid is horizontal. The Forex traders pursue a RSI indicator until the promotion falls in the range of 45 to 55 to make an entry and cover the grid.

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