So a trading strategy in my opinion starts with you identifying what kind of a trader you are, a swing, a day, scalper, intraday etc., and one you have that, then you can go and decide on a strategy that works for you.
I fully agree with you, a good strategy needs rules; a strategy with no rules is not a workable solution. To ensure it works, go back test it, and then, before you place any trade, go and look, are all the rules confirmed, and no, I don’t mean, the 6 indicators you got on your chart all say sell, I am talking about the strategy rules you have devised and tested on the charts.
https://theequitytraders.com/strategies/ is where I wrote a blog on the different strategies, the different type of traders if you will and this is where you should start before you even place the first trade. This will assist you in deciding the chart times, the structures and the candles to look at, never mind the technical analysis which should be taken into account.
Understanding Chart patterns with a good strategy can make your trades more accurate and precise. As a beginner, first, you should understand the basics of forex trading, make a demo account, and practice it. This will help you to understand how the market works in real time.
Price action is basically the human psychology that drives traders to buy or sell. Price action is usually seen when price breaks out of a consolidation, support or resistance.
The price movement of securities plotted over time is known as price action. All technical analysis of a stock, commodity, or other asset chart is based on price activity.
Many short-term traders base their trading choices only on price action and the patterns and trends that can be drawn from it.
Because it employs historical prices in computations that may later be used to influence trading decisions, technical analysis is a derivative of price movement.
Just to cut anyone’s learning curve tremendously: There isn’t a need to learn every candlestick pattern due to the fact that there are simply just a few that print repeatedly in the Forex Markets, and of which have a strong influence on price movement, and those are:
Any area of price, 500 pips to 1000 pips below the current price for Support, and 500 pips to 1000 pips above the current price for Resistance are generally reliable zones.
in simple term Price action means to understand action which is made by price. So to understand Price action you first need to understand Types of Market, Market structure, Candlestick & chart pattern.
Hello! Does anyone know the exact numbers to determine wheter a candle is a dragonfly doji or a hammer? And same with doji and spinning top… I thought i read somewhere that if the body is less then 5% of the total candle length, the candle is considered a doji. But if the body is more than 5% of the total candle length, it is considered a hammer. Can anyone confirm or deny? Thanks in advance!
the shorter the time period you use, the more number of preceding candles you have to read. This is what my logic says after observing for a bit. I usually hover on 3 minutes or 1 minute, so to get a good summary of what has happened, I would have to read like 9 or 10 candles before the current one. Any comments on this?
I recently read “The Candlestick Bible” which is free on pdf and on yoututbe as an audio book.
I would definitely finfish the school of pipsology fully, since some sections can be a little confusing for a complete beginner.
Forex price action is precisely what its name implies. It’s the “action” of “price”. It describes the way a market moves, including its trends and key support and resistance levels. Simply put, it reflects how buyers and sellers react. Hence, different kinds of candle stick patterns or structures are regarded as price action patterns.
