Crypto and Forex professional trader, analyst, contributor.
Touch trading, a strategy prevalent in the fast-paced world of forex trading, is characterized by its precision and timely market entries. It involves engaging the market at the exact point where live price action intersects with a pre-identified level, such as a horizontal support or resistance. This approach, while offering unique advantages, also presents certain drawbacks that traders must carefully consider.
Touch trading demands swift adjustments in response to market dynamics. Its foundation lies in the ability to anticipate market reactions at specific points of interest, enabling traders to exit rapidly to minimize losses if their initial analysis proves incorrect. In terms of trade management, this approach often leads to the use of floating stop-loss orders or tight fixed placements, hinging on the expectation of a quick market reversal from significant support or resistance levels. A tighter stop-loss can enhance the risk-to-reward ratio, while early entry at the source offers the potential for substantial profit growth.
Contrastingly, more traditional price action trading strategies may require broader stop-loss placements, as entries further from the origin point need to accommodate the possibility of a benign pullback against the anticipated direction.
Trading Support and resistance levels are crucial in touch trading as they form the cornerstone of the method. A position is typically initiated when the opening price action hits or 'touches' a point of interest like support or resistance.
Touch trading suits traders who can handle losses emotionally and recover quickly to take subsequent actions. Traders using leverage must also ensure that their accounts have sufficient margin to protect against margin stop-outs.
For those seeking a less aggressive approach, breakout trading can be an effective alternative. This strategy involves using indicators to predict price ranges where an asset's value might break through support or resistance. With the right indicators, traders can estimate the potential duration of the breakout trend. This approach generally carries less risk and offers a more generous margin for error compared to touch trading.
In conclusion, touch trading in forex is a strategy that requires precision, quick thinking, and emotional resilience. While it offers the potential for significant profits through early market entry, it also carries risks and challenges that may not be suitable for all traders, particularly beginners. As with any trading strategy, it's crucial for traders to assess their own experience, risk tolerance, and trading objectives before adopting touch trading.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 63.6% | 72 | $95 523.20 | -1.59% | -3.09% | $1 890 429 694 333 | ||
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2 | ETH | Ethereum predictions | 70.4% | 59 | $3 621.80 | -2.23% | 4.19% | $436 218 097 663 | ||
3 | USDT | Tether predictions | 92% | 1 | $1.000303 | -0.03% | -0.06% | $134 162 795 778 | ||
4 | XRP | XRP predictions | 58.8% | 88 | $2.35 | 22.03% | 55.33% | $134 008 145 144 | ||
5 | SOL | Solana predictions | 65.6% | 74 | $227.22 | -4.39% | -10.92% | $107 963 781 068 | ||
6 | BNB | Binance Coin predictions | 81.2% | 31 | $639.63 | -2.52% | -4.93% | $92 113 151 283 | ||
7 | DOGE | Dogecoin predictions | 54.8% | 93 | $0.414433 | -3.12% | -4.33% | $60 934 659 886 | ||
8 | USDC | USD Coin predictions | 93.6% | 1 | $0.999885 | -0.02% | 0% | $39 953 701 426 | ||
9 | ADA | Cardano predictions | 59.2% | 84 | $1.098899 | 2.62% | 3.22% | $38 555 845 015 | ||
10 | AVAX | Avalanche predictions | 68.4% | 69 | $47.29 | 6.64% | 1.29% | $19 354 282 669 | ||
11 | TRX | TRON predictions | 60.4% | 80 | $0.206824 | -0.55% | -2.23% | $17 849 842 228 | ||
12 | SHIB | SHIBA INU predictions | 58.4% | 94 | $0.000029 | -2.55% | 11.86% | $17 234 033 938 | ||
13 | TON | Toncoin predictions | 69.6% | 62 | $6.50 | -4.09% | 4.64% | $16 548 049 282 | ||
14 | XLM | Stellar predictions | 58% | 89 | $0.517429 | 1.39% | -5.15% | $15 561 708 340 | ||
15 | DOT | Polkadot predictions | 59.2% | 84 | $8.73 | -2.42% | -4.66% | $13 308 222 653 |
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