he price chart doesn't move in a straight line. It usually happens that even if the price has a certain trend, it still makes a lot of small moves back and forth. Such moves occur naturally as large positions are opened and closed at the interbank market.
When you open a trade, the ideal situation is that your position quickly moves to profit. However, random fluctuations of the price — the so-called ‘noise’ — can lead you to a drawdown and even prematurely trigger your
Stop Loss. In addition, market noise can also give you false trade signals.
A trader always aims to make the most precise entry in the market: the one that fits “buy low, sell high” principle and is not followed by a drawdown. To achieve this goal, it’s necessary to understand how to deal with the market noise. This is what we’ll explain in this tutorial.
1. Timeframes
2. Focus on trends
3.Determine the direction of a trend
4.
Use special indicators that eliminate the market noise