Forex Price Action

[Forex School Online]

Hello my name is Johnathon Fox.

I am a professional trader and trade solely using Price Action from very good levels alsong with strict money management and a few techniques to protect capital at all times.

I am looking to have some intelligent conversations and dispel some myths about price action. I will begin by posting an intro into Price action and then some recent setups.

I will post "Live" trades as I go along as well. Hopefully I will be able to show just how simple trading can be and help some people along the way.

All comments are welcome along with any other setups traders are playing!

Safe trading,

Johnathon Fox

[Haley12]

Johnathon, it is good that you are going to start new conversation about "price action". It is a hot topic for forex traders.

[Forex School Online]

Thanks Haley. I hope to get some solid convos going and lots of great setups posted. I will now post a very small intro and a few recent trades played.

Johnathon

[Forex School Online]

What is Price Action?

Price Action is everything that price is doing on any trading instrument, being represented on a chart for a Trader to see.

In very basic terms Price Action illustrates in a way that a Trader can see exactly on a chart, what a certain pair did for a particular time frame. For example the individual candle sticks or bars will show how high the pair went, how low the pair went and also the open and closing prices. Most charting platforms can produce candle sticks and bars for time frames varying from 1 minute to 1 month.

Another way to think about it is, Price Action is everything humans are doing and how they are trading, shown in a chart form.

This basic explanation of Price Action is not subjective. What I see on my chart is exactly what another Trader will see on their chart, providing they are using the same charting equipment.

The next question is the important question. How can we use Price Action to profit? Humans are very habitual. Traders tend to do the same things and react the same way over and over again when presented with similar circumstances.

Although if the same two Traders have the same charts they will see the same Price Action that does not mean the same two Traders will come to the same conclusion. In this way Price Action can be interpreted by the individual depending on how they understand different Price Action formations.

If you have watched the charts previously you may have noticed that the same patterns, most of the time, repeat themselves. This is once again because humans are habitual and react the same way given very similar circumstances.

So if we can notice these patterns and human trading habits in the markets, we can start to find a trading strategy and implement it, to make money off the other Traders, while they carry out their normal trading patterns.

These patterns will continue repeating themselves as long as human’s trade. Like I said, humans are very habitual and most of the time they repeat themselves, over again given similar circumstances.


What is needed to trade Price Action?


Clean charts-

Price Action is best seen and traded from clean charts. To trade Price Action we don’t need fancy indicatorsor anything at all except for a clean chart.

Many Traders fall into the trap of thinking the more indicators they have on the charts the better chance they have of predicting where price will go. This is just plain wrong. Indicators just confuse what doesn’t need to be a confusing process.


Continual education and practise-

Trading the Forex markets with Price Action is a skill that takes continual practise. The Forex markets are continually doing new and different things and all Traders from the beginner to the advanced can continue to learn by trading and watching Price Action through their charts.


An edge on the market-

A trading edge is something that gives a Trader a statistical advantage of being profitable over a sample size of trades. The edge for a Price Action Trader is their Price Action signals and trade management. Forex School Online teaches its members how to trade low risk with high reward setups, using solid Price Action formations that form in the markets time and time again. Without an edge a Trader may as well just flip a coin because even a coin toss should average out to 50/50.

11v.jpg

Trading can be very rewarding and profitable endeavour if the Trader knows how to trade using solid Price Action techniques. Trading with Price Action allows the Trader more flexibility and a lot less stress than the Trader who trades with so many indicators they get confused.

In forex trading less is more. Less confusion and less overcomplicating things leads to more success and ultimately more profit.


Safe trading,

Johnathon Fox

[Forex School Online]

Here is a chart of the EURUSD 1HR time frame. The EURO is excellent at firing of intraday signals that produce huge results. The bigger and more obvious the setups the more often they work. This was simply a Price Action traders bread and butter!

1213.jpg

Johnathon Fox

[Forex School Online]

Here is a chart of the 1hr TF EURUSD again. This chart shows the very large and very obvious Bearish Engulfing Bar that I traded live. I will attach a video of this trade in the next post.

1212.jpg

Johnathon Fox

[Forex School Online]

Here is a video of a live trade of the above setup i posted on the EURUSD 1 hr TF.

The Bearish Engulfing Bar can be one of the most powerful and reliable setups when a Price Action trader learns how to trade and manage it correctly.



Please feel free to leave comments or post/discuss any price action or setups.

Safe trading,

Johnathon Fox

[Forex School Online]

Below is a video of a live trade played on the daily timeframe on CADJPY. I love trading the daily time frame and once most traders do it they find the same thing.

Enjoy,

Johnathon

[bhops]

Hi Johnathon,

I do like the PA signals you are advocating. I first found PA trading over here on Babypips but for one reason or another threads on pure PA trading just seemed to die out.

Here is a nice BUEB I am looking at on the NZD/CAD Daily. It has happened at a nice level but I really like to trade pullbacks and this hasn't quite pulled back enough for me. I will keep an eye on it though.

2012-01-08_NZD_CAD_Daily.jpg

I'll chuck a few more up as I see them.

[Forex School Online]

Hi Johnathon,

I do like the PA signals you are advocating. I first found PA trading over here on Babypips but for one reason or another threads on pure PA trading just seemed to die out.

Here is a nice BUEB I am looking at on the NZD/CAD Daily. It has happened at a nice level but I really like to trade pullbacks and this hasn't quite pulled back enough for me. I will keep an eye on it though.

Attachment 20300

I'll chuck a few more up as I see them.

Hey Bhops,

just be careful trading reversal signals that have formed without a significant pullbacks or rotations. The other thing to watch is the pip spread on this exotics!

Safe trading,

Johhathon