Price Action Trading Help

Hey everyone,

I’m a greenhorn trader in Forex and I was hoping to get some insight from the more experienced and successful. When I trade I like to have a clean chart to look at because I tend to get confused and I doubt myself when I have too many indicators on the chart. My trading generally consists of candlestick patterns, fib retracement and support and resistance levels; can anyone suggest any ideas to help me in my trades? Like an indicator that would help me make a decision whether the market will bounce or breakthrough a given level.

And in your opinion, is the hourly chart too small of a time-frame to use price action trading?

Thanks for all the help! :21:

Hi,

Have you tried reading other forex price action threads? Here are a couple of popular ones:

Understanding Price Action by Chris Capre

Pure Price Action For Dummies

Capre is definitely a resource you should check out. He trades w/ two indicators: a 20 EMA and his mind.
The core of his method is identifying impulsive/corrective and volatile/nonvolatile market dynamics.

I agree 100% with pretty much everything he posts, and he’s definitely one of the more seasoned (and legitimate) traders on the forum. I’m not affiliated w/ him, but, his free resources can definitely get you started down the proper path to price action trading.

To answer your question- a “level” is most likely to be “broken” when the market is trending smoothly in impulsive, nonvolatile fashion. When you understand those terms, you’ll understand why the likelihood is high.

Jake

Doesn’t matter if you use price action on a tick chart or monthly. The same PA forms all time frames. All you need is support and resistance levels, swing highs and lows a a few basic candle patterns. The rest will fall into place as long as you are prepared to do the hard work.

All the best in your journey bro

Bob

Hi Ayrtonm,

There is not such an technical indicator that would tell you in advance if a level . would been broken or bounced of. If there would be such an indicator, than it would be the holy grail!!:21:

What I use is the movement or trend on a higher timeframe. For instance if I would like to trade the 1hr charts, based on price action, I would watch the daily chart. On the daily chart I determine what the trend is on that pair. Than I go back to my hourly chart and trade the levels on the hourly chart in the direction of the trend of the daily.

So strategy is based on combining multiple time frames. Do not watch only one time frame, the one you are trading. Look for the bigger picture first. Try to go with that. It is like pissing against the wind, most change that you get wet!!! :32: