In Forex trading, price always gives us a 2nd chance to place our trades before it takes off.
It can be considered as a 2nd chance or you can consider it as a confirmation bar.
In the chart above, Aud Usd.
We can see the first highlighted blue box showing a pin bar.
As this was not the nicest pin bar of all. We did not take it.
Or if just to say – we missed this pin bar for some reasons. Either by choice or we were not at the chart when it happened.
As mentioned, price always gives us a 2nd chance or a confirmation bar – which is the 2nd highlighted blue box showing a pin bar.
Telling us a great hint that the train is sounding its horn and is taking off – getting the last few passengers to board the train.
Usually Most of them time, the train will take off after that, heading our direction.
In the chart above, besides the pin bar. There are several reasons (confluence factors) which we had entered on the trade.
Overall uptrend movement
Pin bar at the price pivot area 0.94900
Trend line confluence
Double confirming pin bar
Remember – the more the confluence. The higher the probability of the trade.
Forex trading Pair: Gbp Aud
I need not explain much on this as its clearly shown in the chart.
Double pin bar
Price pivot area of 1.63500
Swing Low
Divergence
There are plenty of examples in regards to this if you look closely at the charts itself.
[B]What is Price Action?[/B]
A lot of people have this question in mind, what exactly is Price Action.
And why is Price Action King in Forex?
To answer the above question, i start off with talking about indicators.
There are tons of indicators out there, be it forex or others. They work mostly the same way.
And there are new indicators coming out every other day.
Alot of traders when they first started trading forex, they have tons on indicators on their charts. Trying different combination of which works best for them. And at the end of the day, they get confused all over as one indicator may be telling you to go long, but the other is telling you to go short.
Which will result in you making bad decisions and end up blowing your account with a frustrated mind.
Why does it happen this way? Indicators are derived from the chart movements. Some indicators react faster, some slower.
However, as they are derived from the chart movements. They are 1 step slower than the chart. Which is in fact Price Action!
Price Action leads the indicators, and when price reverses it movement from short to long (example). The indicator which you are watching is one step too late. And by the time the indicator confirms it is going short, Price Action has taken the market to go Long.
This happens most of time, if not all of the time.
Therefore = ALL INDICATORS ARE LAGGING INDICATORS!
PRICE ACTION IS WHAT LEADS THE INDICATORS, IT IS KING IN FOREX!
By understanding Price action in forex trading, we are able to understand the ENTIRE PICTURE of the market.
WHY is the market moving up,
WHAT causes it to stop moving,
WHY is the market reversing
WHY is the market in consolidation
IT is like reading a book once you have mastered price action in forex. And the best thing is, It is not difficult!
It is even easier than you reading an indicator.
And when you mastered price action, with combination of our system. You will almost be able to pick absolutely MARVELLOUS TRADES all the time. CONFLUENCE is the King of the game. This is what equates to our high probablity trades with a high winning ratio.
A lot of traders can actually feel their emotions in place when they place their trades. And seeing their trades taking place.
Emotions include:
Heart Thumping (Beating faster)
Sense of Anxiety
Nervousness
Excitement
Irrational Behavior
Frustration
Desperation
Hatred & Revenge mindset
Devastated
Always feel that the market is going against you
Etc,
If you feel any of the above in trading, it is normal. The market is set for you to feel this way.
Which is why to be a successful trader, 80% is about conquering and mastering trading psychology.
And some of the reasons that you could be feeling any of the emotions above include:
You are trading way beyond your risk level (Trading too high an amount of your capital)
You have not calculated your proper risk size before entering
You entered based on Gut feel
You fully expect and anticipate that the market will go your way according to your previous experience or something which you had learnt – but it Didn’t…
You are trading on a money that you desperately need. (Eg. borrowed money, food money, life saving money etc…)
Etc.
If you have experienced the above, stop trading for the moment.
Remedy:
Go get a shower and analyze what had gone wrong
Go for a stroll in the park, beach etc…
Self Reflection
Meditation, calming exercise
Ask yourself, are you trading the right way?
Are you actually trading or gambling?
Do you have a proper trading system?
Did you entered on proper setups (eg. price action) or you entered based on your gut feel?
Trading is about self analyzing, discipline, self control, and sticking to your trading system.
It may sound tough at first, but once you start practicing the stuffs here for 20 days. It will then become part of you and you are no longer putting any conscious effort in applying the above.
Yes, you are right asiaforexmentor, about price action. I would love to learn it, and give it a try out to success if possible. Any recommendation to learn Price-Action for Forex Trading for Beginner-till-master, etc… Looking forward to hearing from you, cheer’s
But apparently he’s banned. its just short of a qn about how much to learn from his course. he’s known to copy materials from here babypips’ contributor & made it his own & charge for a fee. Loser.
Indeed, you are correct asiaforexmentor, about value activity. I would love to learn it, and try it out to progress if conceivable. Any proposal to learn Price-Action for Forex Trading for Beginner-till-ace, and so forth… Anticipating got notification from you, cheer’s
