Many forex traders tend to try to analyze multiple variables at the same
time, especially traders who do not yet have a specific strategy and
methods to be applied in daily trading. Often they combine several
technical indicators at once, see a few currency pairs in different time
frames as well as the development of various news reading fundamentals.
This way is clearly not effective. They intend to understand the
movement of market prices with coverage that is too broad so confusing
and tends to over-
analysis. This article related to the concept of ' specialisation ' in forex trading, where the method of price action is one part of it. Forex trader is a profession, and as with any other profession, specialization in General is always more profitable. Doctors commonly encountered and for the lucky income can be very good, but the more rare specialist of general practitioner course will earn better because they controlled the special fields that are not owned by general practitioners. A forex traders who have certain methods that have been tested are specialists in trading.
The advantage of the method of price action
the main advantage is price action trading method this method can be used with simple. We just need to focus on the pattern of market price movement for what it is as well as level-the level of support and resistance. Technical indicators are very minimal, usually only the moving average indicator for confirmation. The method of price action can be applied on all currency pairs and time frame trading used usually daily or 4-hour. If at one time frame have been formed within the formation setup price actionnya, then it should not be compared with the time frame larger or smaller. With the accustomed method using price action in the discipline in trading, the trader will no doubt when it was about to open a position because of the trading signals that are generated are usually quite valid.
Examples of the application of the method of price action Following the trading method is exemplified
with the price action on the EUR/JPY daily. You could develop a method of price action with your own strategy, especially in determining entry and exit points as well as risk/reward ratio. EUR/JPY is exemplified here because this currency pair is quite popular, liquid and can be predicted (predictable)
First is to determine market conditions, trending or ranging (sideways)
analysis. This article related to the concept of ' specialisation ' in forex trading, where the method of price action is one part of it. Forex trader is a profession, and as with any other profession, specialization in General is always more profitable. Doctors commonly encountered and for the lucky income can be very good, but the more rare specialist of general practitioner course will earn better because they controlled the special fields that are not owned by general practitioners. A forex traders who have certain methods that have been tested are specialists in trading.
The advantage of the method of price action
the main advantage is price action trading method this method can be used with simple. We just need to focus on the pattern of market price movement for what it is as well as level-the level of support and resistance. Technical indicators are very minimal, usually only the moving average indicator for confirmation. The method of price action can be applied on all currency pairs and time frame trading used usually daily or 4-hour. If at one time frame have been formed within the formation setup price actionnya, then it should not be compared with the time frame larger or smaller. With the accustomed method using price action in the discipline in trading, the trader will no doubt when it was about to open a position because of the trading signals that are generated are usually quite valid.
Examples of the application of the method of price action Following the trading method is exemplified
with the price action on the EUR/JPY daily. You could develop a method of price action with your own strategy, especially in determining entry and exit points as well as risk/reward ratio. EUR/JPY is exemplified here because this currency pair is quite popular, liquid and can be predicted (predictable)
First is to determine market conditions, trending or ranging (sideways)
Having in mind the market conditions are currently uptrend, we then determine the level key support and resistance:
We use indicators of exponential moving average (ema) 8 and 21 ema as
confirmation of the setup price action formed. As it known in the setup
price action there is pin bars, fakey bar and inside the bar. In the
chart of EUR/JPY setup fakey look of this bar by the refusal (rejection)
of ema8 as a dynamic support level, and if the setup is correct
(unconfirmed) price will move in the direction of the uptrend.
The main characteristics of the formation of the fakey bar consists of
the inside bar, followed by a false break ' bar ' that is formed and
closed at the level of the range inside the bar. The entry point for a
buy position can be specified when the top level inside the bar is
penetrated, being stop loss level set at a low level of formation fakey
bar (the ' false break ').
Finally we set the risk/reward ratio. Can be 1:1 or 1:2 in accordance
with the money management strategy which we have agreed. We can also
maximize profit using trailing stop, averaging technique or pyramiding.
