This would tell you if it is the right time to buy or sell. These two techniques are the basis of the price action trading strategy that is discussed in this article. They would assist you to discover and trade highly prospective setups. This trading strategy is completely based on Price Action. The price action trade strategy works in all market conditions.

It effectively works in trending markets, markets that are less volatile, ranging markets, highly volatile markets, ranging markets and markets with high volatility.

Trading strategies based on indicator functions well in particular market conditions. A strategy that is effective in low volatility markets may not succeed in a market that highly volatile or in ranging and trending market situations.

Price action is adaptable. It suits any market condition while forex indicators, on the other hand, are much more inflexible and unadaptable. In addition to adapting to any market condition, the price action adapts well with any currency pairs, various time frames and, more importantly to every type of trader.

One more thing, price action trading strategy makes your trading simple and uncomplicated as it can let you execute trades easily with your smartphones. The price action trading strategy is very simple to use. The most frequent pitfalls of the majorities of trading strategies are that they are overly complicated and make it difficult for the trader to understand and utilize effectively.

The chart above, for instance, is too complicated and cannot be easily used to trade with the smartphone. Even when you try to do it, it is hardly comfortable or efficient and too muddled up.

The central part of any price action strategy is to simplify trading. It is essential because simple trading strategies work better. The charts we will exemplify below only contain support and resistance areas. We will combine the support and resistance areas with candlestick analysis to trade Forex. This chart is not muddled up, it is not difficult to understand or go through it. It contains the only thing you need for a price action trading analysis with nothing to distract your attention.

This trading style is fast effective, hassle-free and can be traded on the go with all manner of devices which includes your smartphone. If you are looking for an uncomplicated and simple forex trading strategy that guarantees success, this article is the answer.

Support and resistance areas tell you where to buy and sell and are an essential part of forex trading. You need to study how you can situate them to be successful as a trader. Situating support and resistance areas is very significant for your success in forex trading.

You need to master the skill but the good thing is that it is easy to place. Support and resistance areas split your chart into buy and sell areas. The area that lies on top of the present price is a sell area while any area underneath the present price is a buy area. Buyers and bulls here signify the same thing. Support is an area where buyers are mostly found and are thus referred to as a buy area.

Sellers and bears represent the same thing here. Sellers are frequently found at resistance area and it is thus referred to as sell areas. This is a very robust resistance or sells area. When price moves close to the sell area, huge numbers of sell orders are activated and these cancel out buy orders. The result of this is that the price either stands still or makes a U-turn and reverses in the opposite direction.

The reason is simple. At these positions of support and resistance, the market movers such as banks and hedge funds place their orders at areas of support and resistance. Why Market Movers Place Their Orders at Support and Resistance areas. Experienced traders avoid placing random entry orders with the aim of trying out if they would be lucky or not.

They position their entry orders at crucial price levels. There are different things that determine what these crucial levels are:.

The next time it comes to the level, it retraces back again and after that, it occurs two additional times in places highlighted with yellow. Due to the fact that market movers position their buy orders at the 1. This occurs frequently with all currency pairs and also occurs in every financial market.

This is the way the forex market functions, buy and sell orders are classified together in an identical common area and when price approaches those areas, you will observe the price impact. There are many indicators you can find that alleges to offer traders great support and resistance areas.

However, not of these are reliable. Placing support and resistance levels are better done by you. A good Forex trading strategy requires some work! These are the structural levels that the market is paying attention to. The next thing you need to find out is this:.

It can be any bullish reversal candlestick pattern, such as dragonfly doji, hammer, piercing, bullish engulfing, etc. This way, the broken resistance will turn into a new support for the price. Still, you have to wait for the green light at the support. This is probably the first time you come across this term in forex. A confluence will greatly increase the odds of a winning trade. Imagine you decided to change your career path because your parents advised you to.

They painted the picture of a bright future for you. A person who has succeeded in this particular industry comes to share his story with you. Then you realized that the point which the price fell at is the structural support as well. As you know, prices have the tendency to bounce up from the support.

In this case, a piercing pattern formed at the confluence of the trendline support and structural support, will you still hesitate to smash the buy button? My team will send it to you right away. Chart Analysis. Because of that… I decided to pursue the education path in the forex space with a mission to enable the success of forex traders of all levels. Dec CHRIIS LIEW. Learn more. Price action —The best forex strategy in X. The list goes on. This cannot be further from the truth.

You ready? Pillar 1: The Major trend Let me ask you. Zooming out gives you a view of the big picture. Pillar 2: The Critical level What level on a forex chart is so critical to ignore?

Look, this is how it goes. The next thing you need to find out is this: 1. Or, 2. Whatcha gonna do? Pillar 4: The Confluence This is probably the first time you come across this term in forex. What does confluence mean? Forex trading is the same. Confluence gives you confidence. Wish you massive success!

I decided to pursue the education path in the forex space with a mission to enable the success of forex traders of all levels. I hope you find my sharing here informative and constructive. So far, no forex signal app will display their win-loss report. But this app is completely transparent , click the button below:. If I could only keep one trading strategy in my forex arsenal, it would definitely be price action!

Price action describes the actual market movements using raw price data. When you analyze the forex market based on the primary data source, you will be able to see the details that are not otherwise seen in the secondary data source as they are often filtered out in the process. This is freaking deep, I know. So let me clarify with some examples. You see, price action will tell you the strength of the current momentum with the size of the candlesticks.

When the candles are contracting, you know the prevailing momentum is weakening. Also, price action will tell you the critical price levels that the market is paying attention to. And those levels are structural support and resistance. Price action also tells you that the price level the market rejects through candlestick patterns. And such patterns as long legged dojis, shooting stars and hammers do pretty good work.

Price action strategy is simple and wonderful. But the problem is, it is often mythicized on the internet. The holy grail for forex traders —Price action strategy guides. No, thanks! If it is, you probably lack a simple and clear study guide. You can store it on your phone or print it out for your convenient study.

Make sure you read till the end to know the exact way to obtain the price action PDF for free. This is probably the best holy grail forex price action guide in the 21st century! There are 4 pillars to formulating a price action strategy. How many pillars? Let me ask you. If you were a CEO of a company, would you care more about the day-to-day revenue or total revenue in the last quarter? You see, forex trading is no different from any business. Keeping your eyes on the bigger picture is important, and you should always do that.

Is the overall market now trending up, down, or moving sideways? Why is it that identifying the major market trend is so important?

Because we want to be WITH the trend when we establish our directional bias, not AGAINST it. We want to bet on the buy side in an uptrending market, and sell side in a downtrending market. Different market trends may have different structures which may require a different way of trading.

What level on a forex chart is so critical to ignore? These are the structural levels that the market is paying attention to. The next thing you need to find out is this:. It can be any bullish reversal candlestick pattern, such as dragonfly doji, hammer, piercing, bullish engulfing, etc. This way, the broken resistance will turn into a new support for the price. Still, you have to wait for the green light at the support. This is probably the first time you come across this term in forex.

A confluence will greatly increase the odds of a winning trade. Imagine you decided to change your career path because your parents advised you to. They painted the picture of a bright future for you.

A person who has succeeded in this particular industry comes to share his story with you. Then you realized that the point which the price fell at is the structural support as well. As you know, prices have the tendency to bounce up from the support. In this case, a piercing pattern formed at the confluence of the trendline support and structural support, will you still hesitate to smash the buy button? My team will send it to you right away.

Chart Analysis. Because of that… I decided to pursue the education path in the forex space with a mission to enable the success of forex traders of all levels. Dec CHRIIS LIEW. Learn more. Price action —The best forex strategy in X. The list goes on. This cannot be further from the truth. You ready? Pillar 1: The Major trend Let me ask you.

Zooming out gives you a view of the big picture. Pillar 2: The Critical level What level on a forex chart is so critical to ignore? Look, this is how it goes. The next thing you need to find out is this: 1. Or, 2. Whatcha gonna do? Pillar 4: The Confluence This is probably the first time you come across this term in forex. What does confluence mean?

Forex trading is the same. Confluence gives you confidence. Wish you massive success! Show 12 comments.

The main idea of this pattern is trend continuation. Now, let's move onto the topic of candlesticks Learn My Forex Scalping Strategy While the strategy above is an awesome day trading strategy and even a swing trading strategy, for scalping you will need a different approach. Due to the fact that market movers position their buy orders at the 1. If ma is pointing higher, and the price is above it, then the long term trend is up. Thanks again, and I wish you nothing less than success! Pillar 1: The Major trend Let me ask you.

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