How to Partially Close a Position on MT4 - forex day trading advice

How to Partially Close a Position on MT4 ~ forex day trading advice

Let’s say you have a one lot position, but you decide to close half of it and hold the other half. That is possible to do in most trading platforms including MT4. This is what you have to do:

1. Press Ctrl+T to open the MT4 terminal. You can do it through the View menu at the top too.
2. On the terminal, choose the “Trade” tab at the bottom, if it is not already chosen. When you do this, you should be able to see all your open positions:



3. Double click on the open position on the terminal to open the order management window with the big yellow close button:

Please note that if you click on the fields that are under the S/L or T/P columns, a different order management window will be opened that allows you to modify the stop loss and target values, but doesn’t allow you to close the position.

4. To close a portion of your position, you can change the volume at the top left side of the order management window to the value you want to close, and then click on the yellow button. For example, when you have a one lot position and you want to close half of it and hold the other half, then you have to change the volume to 0.5 and click on the close button. Or, when you want to close 0.2 lots and hold the other 0.8 lots, you can change the volume to 0.2  and click on the yellow button.

Please note that if you cannot find the value you want on the volume drop-down menu, you can enter it manually.
The stop loss and target value of the position which is left open will not change when you close a portion of your initial position.
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3 Ways To Identify A True Trend In Forex Trading - best forex trader advice

3 Ways To Identify A True Trend In Forex Trading ~ best forex trader advice

In the foreign exchange markets, like in many other markets,there are two basic types of trading environments – a trend and a range. A trend can be defied as a general move in one direction while a range is an oscillation in price between two broad levels. In stocks, we typically try to “buy low” (at a value) and“sell high”; this is actually the foundation of range trading.

We Attempt To Outline Three Simple Methods To Identify A Trend:

» Bollinger Bands
» Moving averages
» ADX

Bollinger Bands

Bollinger Bands basically plot standard deviations above and below a moving average. They were developed in the early 1980sby John Bollinger and are typically used to determine volatility. At GFT, however, we like to use Bollinger Bands to help us gauge atrend.

In the chart below, we plotted a set of standard Bollinger Bands using the settings 20,2 (which mean two standard deviations awayfrom the 20-day moving average) and then added a set of 20,1 Bollinger Bands (one standard deviation away from the 20-daymoving average). This helps us to create our buy zone and sell zone.

Typically, when an uptrend in a currency pair is very strong, it will remain in the buy zone, the zone between the upper Bollinger Band of two standard deviations and the upper Bollinger Band of one standard deviation, for some time. When the downtrend is very strong, the currency pair will remain within in the sell zone, the zone between the lower Bollinger Band of two standard deviations and the lower Bollinger Band of one standard deviation. If the currency pair closes below the buy zone or above the sell zone,we say that it has entered the range trading zone.

Bollinger Bands are great tools to use to help determine when a currency pair enters or exits a trend. For those traders who like topick tops and bottoms, a good way to do so is to wait for the currency pair to exit the buy or sell zones.

Moving Averages

Moving averages is another great tool for identifying a trend in the currency market. By defiition, moving averages track the average price of a currency pair over a specifid period of time. A 20-day Simple Moving Average (SMA), for example, tracks the average price of a currency pair over the past 20 days.

One way to identify trends with moving averages is to look for a perfect order. This occurs when all of the shorter term moving averages are above the longer term moving averages in an uptrend and the longer term moving averages are above the shorter term moving averages in a downtrend. We usually see a new and powerful trend emerge when these perfect orders form after a period of range trading.

Here is an example in the GBP/USD pair where moving averages are lined up in a perfect order. As you can see in the chart below, the 10-day SMA is below the 20-day SMA, which is below the 50-day SMA and those are below the 100-day and 200-day SMAs.We have also highlighted the day that the perfect order formed (August 11, 2008). At that time, the GBP/USD was trading at 1.9100. Forty days later when the perfect order breaks ranks on September 22, 2008, the GBP/USD was trading at 1.8572 or 500
pips lower.

Perfect orders do not form often, but when they do, they can provide a powerful sign that a new trend has emerged.

ADX (Average Directional Index)

The ADX is short for the Average Directional Index, which is a classic measure of a trend’s strength. Unlike Bollinger Bands and moving averages which can help defie the direction of the trend, the ADX simply measures whether the trend is strong or weak.The index is displayed as an oscillator in a separate box below the price charts on a scale of 0 to 100.
As a rule of thumb, if the ADX is greater than 30, a trend is strong; if ADX is below 20, a trend is weak. In a strong trend, we want to see the ADX sloping upwards. In the following EUR/USD chart, we inserted vertical lines to represent the times when ADX crosses the 30 mark.
Back in March 2008, for example, the ADX crossed above the 30 mark when the currency pair was trading at 1.52. Over the next month, the currency pair gained strength at a relatively rapid pace and ended up hitting a high above 1.60. When the ADX crossed back below the 30 mark, the currency pair ended up range trading for the next few months before breaking lower in the middle of July.

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