There is no such thing as best trading strategy – while a trading system may be perfect for you; it may not work with other traders.
The likelihood of FOREX price action is not far from having a perfect trading system. After all, knowing the market movement at an early stage is a necessary first step for any FOREX trader.
However, no matter how perfect a system is, it is useless if there is no discipline to follow the chosen system. In the case of FOREX price action, without discipline to follow what the price movements and indicators say, the system is useless.
Discipline is the most essential and indispensable characteristic of a FOREX trader. The trader should avoid the temptation to trade, however profitable it may sound, when the indicators do not match because you may be seeing a false signal. It does not help the profitability of the price action.
You have to choose the right system and the right attitude to follow this system. If you are a FOREX trader, choosing the FOREX trading price above traditional indicators is only the first step. Having the discipline to follow the system is the next big step.
What is price action?
Price action refers to the movement in the price of a security over time. This price movement can be followed and analyzed on a bare chart; or price chart without an indicator, in which case it is called pure price action analysis trading.
Price action analysis, as it relates to the forex market, is a popular form of trading that has stood out among retail and commercial traders due to its efficiency and simplicity. There are different ways to implement price movement analysis into your trading routine, as essentially all technical standards and charts analysis requires knowledge in price dynamics analysis.
Benefits of using price action
Price action trading works well in the forex market due to the dense liquidity of the major currency pairs, as well as in the currency markets 24 hours a day, 6 days a week.
Trading according to the exchange rate patterns is a relatively low way to trade, as there are no complicated indicators to worry about and it is not very expensive to get information on the stock price.
Learning to accurately interpret the price movement of a forex currency on daily or weekly charts can be a great alternative to short-term trading for traders who still want to make extra money in the markets, but don’t want to. spend a lot of time negotiating the steps.
Another great advantage of forex stock trading is that you change the most relevant and accurate reflection of current market conditions. This allows you to make the most informed decision on the possible direction of any forex currency pair. This is compared to traders who try to analyze various lagging indicators or use forex trading software, which is just a different and arguably more difficult way of interpreting price movements.
Trying to learn to trade forex with lagging indicators or trade “robots” instead of rough price movements is like trying to learn to drive a car in dense fog, when you can learn to drive on a clear day. and sunny.
There is really no benefit in not taking the time to learn how to trade price action, as all other forms of technical analysis are simply a derivative of price action concepts.
Trading with price action can greatly improve and simplify your forex trading experience. Most professional traders use simple methods that use basic trading concepts, such as simple analysis of price movements.
Indeed, professional traders understand that there is no need to overcomplicate their trading strategy when most trading success depends on money management and the psychology of trading. Many novice traders end up getting confused and making trading much more difficult than necessary, using overly complicated trading strategies.
This, in turn, negatively influences their business mentality and takes them further away from the goal of making consistent business profits. Learn how to trade forex price action and you have a great chance of finding the results you want as a forex trader.
Finally, If you want to understand why the market is moving this way, remember: less is more. Look at the currency pair all day on a 1 hour chart with no indicator. If you focus enough, you can see patterns happening every day. These models can really predict the markets.
So far with these indicators, Just follow the price action. It will never fool you.