This article discusses about some way of confirming setup price action
formed in order to obtained a valid trading signals. Konfirmator
commonly used is a level-level support and resistance, both in the form
of a horizontal line as well as in the form of moving averages. Price
action formation creations can be directly observed in chart trading, so
too are the levels of the intended konfirmator. With the combination of
price action and the level of support or resistance will be obtained
with trading signals a high enough probability.
The stronger level of support or resistance the more valid trading signals are generated. Price action formed at approximately the level shows market sentiment is going on. To avoid any noise or errors that might happen we can use the time frame height (4-hour or daily), is to determine the proper entry momentum could use technical indicators as indicators of oscillator overbought level for knowing or oversold (RSI, stochastic, MACD), and indicator ADX trend strength to know is going on.
Confirmation of the price action on the conditions of the market trending
the following example setup price action that occurs on the level of support and resistance levels for the downtrend market conditions (the main trend) and corrections (the retracement).
The stronger level of support or resistance the more valid trading signals are generated. Price action formed at approximately the level shows market sentiment is going on. To avoid any noise or errors that might happen we can use the time frame height (4-hour or daily), is to determine the proper entry momentum could use technical indicators as indicators of oscillator overbought level for knowing or oversold (RSI, stochastic, MACD), and indicator ADX trend strength to know is going on.
Confirmation of the price action on the conditions of the market trending
the following example setup price action that occurs on the level of support and resistance levels for the downtrend market conditions (the main trend) and corrections (the retracement).
Note the formation of bar formed at level-the level of support and
resistance (a horizontal red line) that we can use to nenetapkan entry
level after the formation of the bar is formed, and also the exit level
of the target. Some pin bar formed experiencing rejection (rejection) by
the level of resistance or support, and long tail bar pin formed close
to a new support level.
Confirmation of the price action on the market condition sideways (ranging)
In a sideways market conditions (ranging), konfirmator is best to be on the level of support and resistance. This kind of market conditions can be seen through the indicator ADX and oscillator where the trend is happening is not strong enough.
Confirmation of the price action on the market condition sideways (ranging)
In a sideways market conditions (ranging), konfirmator is best to be on the level of support and resistance. This kind of market conditions can be seen through the indicator ADX and oscillator where the trend is happening is not strong enough.
It appears that the formation of the bar formed at the level of support
and resistance (inside the bar and pin bar) is quite valid as signal
entry. It's just for the market that is being consolidated like this we
should be careful in determining the exit target must anticipate if the
direction of price movement suddenly turned and turned into a trending.
This is where the importance of the risk/reward ratio in the trading
plan. When the support level has been impregnable with long tail pin bar
formation, then the next two days the price fell sharply and market
conditions become a downtrend. At the time it was formed and the pin bar
support level to break down the actual conditions, ranging above is
finished and changed into a downtrend.
Confirmation of the price action with moving averages as support and resistance Indicator
dynamic exponential moving average (ema) mainly ema8-daily ema21-daily and is often used as a confirmation of the price action that is occurring, especially in a trending market conditions. EMA forms a level-level of support or resistance.
Confirmation of the price action with moving averages as support and resistance Indicator
dynamic exponential moving average (ema) mainly ema8-daily ema21-daily and is often used as a confirmation of the price action that is occurring, especially in a trending market conditions. EMA forms a level-level of support or resistance.
In the example above setup price action which occurred near ema8-daily
ema21 and daily-i.e. the pin bar and fakey bar can be used as a signal
for the entry.
