In the previous articles has been discussed a lot about the trading
strategies with the price action and how to apply it in a variety of
market conditions. For those who do not yet know the methods of price
action at all, this time discussing the article on the basics of price
action and why a trader should implement this method.
What is Price Action?
The financial market was the scene of the buying and selling exchange rates between market participants. Exchange rates it leave traces in the form of movement of prices or price action can be observed clearly on trading chart.
A trader will read, Digest and ultimately position opening trade followed the trail set up by price action. How trading like this is called trading with price action strategies or trading with price action setups.
In fact, traces of price movement formed by price action is always repeated on any market conditions. It is very closely related to the characteristics of the market participants, where the nature of the one will generally predictable when dealing with money. The action of the market participants are clearly reflected in the formation of the candlestick bars (if you used to use candlestick trading), rods or bars on a bar chart that form the pattern of movement of prices (price action) that are repeated periodically, so that the price action this can be used as a tool in trading to predict price movement with accurate.
Not only on the financial markets or forex market, price action strategies can be applied to any market because of the nature and characteristics of the perpetrator in the same market.
Trading with price action strategies can be applied on any time frame, but it is highly recommended to use the daily time frame considering the accuracy of the data and the resulting signals, in addition to this price action is also suitable and easily applied in the forex market as more trending patterns that occur continuously compared to other market.
Why Use Price Action?
Real easy to be answered, because the price (price) is the principal element is in the financial markets. As with a book, if you don't know how to read it, you will not know what the actual content or story presented in the book. If you don't know how to read the movement of prices (price action) in the market, then you will not be able to understand and Digest ' story ' price delivered market.
Final results from the combination of a variety of variable that is used to analyze or predict future market price movements is itself, therefore we recommend that a trader focuses on understanding price action and not on the parameters of a range of indicators as tools of prediction.
The financial market was the scene of the buying and selling exchange rates between market participants. Exchange rates it leave traces in the form of movement of prices or price action can be observed clearly on trading chart.
A trader will read, Digest and ultimately position opening trade followed the trail set up by price action. How trading like this is called trading with price action strategies or trading with price action setups.
In fact, traces of price movement formed by price action is always repeated on any market conditions. It is very closely related to the characteristics of the market participants, where the nature of the one will generally predictable when dealing with money. The action of the market participants are clearly reflected in the formation of the candlestick bars (if you used to use candlestick trading), rods or bars on a bar chart that form the pattern of movement of prices (price action) that are repeated periodically, so that the price action this can be used as a tool in trading to predict price movement with accurate.
Not only on the financial markets or forex market, price action strategies can be applied to any market because of the nature and characteristics of the perpetrator in the same market.
Trading with price action strategies can be applied on any time frame, but it is highly recommended to use the daily time frame considering the accuracy of the data and the resulting signals, in addition to this price action is also suitable and easily applied in the forex market as more trending patterns that occur continuously compared to other market.
Why Use Price Action?
Real easy to be answered, because the price (price) is the principal element is in the financial markets. As with a book, if you don't know how to read it, you will not know what the actual content or story presented in the book. If you don't know how to read the movement of prices (price action) in the market, then you will not be able to understand and Digest ' story ' price delivered market.
Final results from the combination of a variety of variable that is used to analyze or predict future market price movements is itself, therefore we recommend that a trader focuses on understanding price action and not on the parameters of a range of indicators as tools of prediction.
It is important to Note On the strategy of Price Action:
1. There are many different formations of the candlestick bar at might formed by the price action in different market conditions. He should learn to read and understand a formation before the formation of the others. After you understand how to implement in trading for a specific market conditions, just learning the other formations.
2. If you use the previous time frame under the daily (1 hour, 30 minute, 15 minute, etc.), start learning the trade with the daily time frame in order to avoid an error signal and the ' noise ' in the movement of prices, that would be very influential on the formation of the price action that is formed. Besides the smaller time frame you use, the more you tend to over-trade or frequent entry, and by the presence of noise and false signals or false (false signals) that often occur on the time frame is low, You likely wrong in predicting price movements.
If you are familiar with the daily time frame, start observing the formation of bar formed by price
action.
1. There are many different formations of the candlestick bar at might formed by the price action in different market conditions. He should learn to read and understand a formation before the formation of the others. After you understand how to implement in trading for a specific market conditions, just learning the other formations.
2. If you use the previous time frame under the daily (1 hour, 30 minute, 15 minute, etc.), start learning the trade with the daily time frame in order to avoid an error signal and the ' noise ' in the movement of prices, that would be very influential on the formation of the price action that is formed. Besides the smaller time frame you use, the more you tend to over-trade or frequent entry, and by the presence of noise and false signals or false (false signals) that often occur on the time frame is low, You likely wrong in predicting price movements.
If you are familiar with the daily time frame, start observing the formation of bar formed by price
action.
3. Learn from traders who have successfully implemented a
strategy of price action, or learning the ways of the implementation of
the various application examples of price action trading.
One more thing, regardless of your current trading strategy, the application of the method of price action will not mess up your trading, and will add Your sharpness in predicting price movements of the market.
One more thing, regardless of your current trading strategy, the application of the method of price action will not mess up your trading, and will add Your sharpness in predicting price movements of the market.
