What is Last Kiss Trading Forex?
The Last Kiss pattern is a trading strategy that uses price action to anticipate a break of a support or resistance area. It was first described by Artaud de Montor, a sixth grade workbook author. The goal of this pattern is to help traders identify possible breakouts in the forex market. It typically involves observing the activity of a currency pair to gauge when a possible breakout is about to take place. The idea behind the Last Kiss is that when there is certain amount of trading volume going on in a short time frame, it can hint at an imminent jump in price that will lead to a breakout.
How to Identify a Last Kiss Pattern?
The pattern is generally identified through trading volume. Traders analyze the activity of a currency pair over a certain period of time to determine if there is an increase in trading volume. An increase in volume can signal an impending breakout. Traders also look for price action that hints at a potential breakaway. This involves looking at price patterns, such as a range or a triangle. These formations can indicate that traders are beginning to take positions in anticipation of a possible breakout. Traders must also be aware of the current market sentiment and any news and events that may affect a currency pair.
How to Trade a Last Kiss Pattern?
The trading of the Last Kiss pattern typically involves taking a short-term position. Traders can use various strategies, such as going long or shorting the currency pair, depending on the anticipation of the movement. Traders must also be careful when making their decisions, as the pattern is only a way to anticipate a breakout and not a guarantee of results. Traders need to also closely monitor the price action and the current market sentiment in order to make the most out of the Last Kiss pattern.
The Last Kiss pattern is a useful tool for traders looking to capitalize on a possible breakout in the forex market. This pattern is often used by traders to capitalize on short-term movements and make quick profits. However, traders must be careful when trading the Last Kiss pattern, as there is no guarantee of a successful breakout. They need to carefully analyze the price action and the current market sentiment in order to make the most out of this pattern.
What is Last Kiss Trading Forex
Last Kiss Trading is a trading strategy used by Forex traders. This strategy focuses on taking advantage of market breakouts and offers a simple technique to exploit them. The essence of the strategy is to identify a trendline and buy or sell when the last candle or “Kiss” breaks outside of the trendline. Forex traders that use Last Kiss Trading believe that once the price breaks outside of the trendline resistance, it will likely move in the corresponding direction. This strategy works best with markets that are experiencing strong momentum and trading environments that have strong trends and breakouts.
Advantages of Last Kiss Trading in Forex Markets
Last Kiss Trading offers several advantages for Forex traders. The first and possibly the most notable benefit is its simplicity. The strategy is based on a simple trendline that can be identified fairly easily, and the entry and exit points are clearly defined. This makes the strategy easy to learn and understand. Another benefit is that it can be applied to both long and short positions. Further to this, FX traders can use technical indicators such as the Relative Strength Index (RSI) to ascertain whether the trend is strong enough to take advantage of Last Kiss Trading opportunities.
Drawbacks of Last Kiss Trading in Forex Markets
The biggest drawback to Last Kiss Trading is that there is no guarantee of success. As with any strategy, false signals and losses will occur. As the markets are constantly changing, traders must be prepared to identify false signals and exit back within the trend lines when necessary. Often investors will experience losses due to timing their entries and exits too early or too late. Additionally, market volatility can also have a significant impact on Last Kiss Trading strategies. Therefore, an in-depth analysis of the market and understanding of the strategy principles is necessary for this type of trading.
In conclusion, Last Kiss Trading offers an advantageous approach for Forex traders who are experienced and understand the market well. However, as with any trading strategy, losses can still occur even if the strategy is applied correctly. For this reason, it is important to note that Last Kiss Trading requires discipline, patience and the ability to identify false signals in order to be successful.