Price action forex book
to this lesson and get a pen and paper out. Notice how trades like this can take weeks or months to develop, but when they do, you need to act. Setup or Trend, Level, Signal, and when you get all three of these its like a golden hen that will often give golden egg trade setups. Or how about the US Presidential election? Reading a chart is not just about technical analysis, its about understanding and making use out of the psychology of the market that is hidden in the price bars. This means the line (or value) youre seeing on your indicator is derived by applying a mathematical formula to the price. Begin to analyze the market from left to right, as I have done for you here. Keep your trading journal / diary in a notebook and you will begin to understand what I mean by the story the market is telling. After you master all my price action trading strategies and concepts you should have no doubt of what you are looking for in the market. You can predict what the markets will do with heightened accuracy.
The best way to learn price action. You have absolute control over your trading results without relying on anyone. Once we saw price close under the low of the pin bar, we knew that pin was likely to fail / failing. Next, we want to identify obvious horizontal levels of support or resistance, drawn at the major market swing points / turning points. If the previous two opportunities were not obvious enough, we got a third one, a very nice-looking pin bar buy signal at the same support level as the last two opportunities. Now youre probably wondering: How do I apply price action to my trading? But hey, the good news. So my point is this The market doesnt care about you, me, fundamental reports, news, media, analysts, and etc. We can learn how to interpret this price action and the market psychology it represents to put together the story being told on the chart. The most obvious piece of data we see when we look at a chart is the direction of the market or the trend. These footprints are price bars, and they show us the behavior of all market participants; the big master finance pour devenir trader boys, smart money, hedge fund managers, and even the not so smart money.