Forex is a biggest marketplace of currency, commodities, metal exchange by one with another. Every exchange become profitable depends on price value. If buy price > Sell price, then seller be a profitable dealer. That’s normal issue for every business.
But main part is, to realize that, when price value will up or when price value will be down…
This price movement depend on world economical news effect, which we can try to measure by trend line, support-resistance level, Fibonacci, wave etc…
To measure easily many dealers or traders use many different things or different way to make prediction of Forex market movement. Price Action is one of them. Where no need to read any news or no need to follow on any news event, you should use fresh chart, and need to draw price levels only.
Price action traders try to find out price break out level, support-resistance touch level, trendline touch level, Candle pattern pattern level, such as pin bar level, inside bar level, doji level, dark cloud cover level, engulfing level etc…
Price action trader always use strict target level & Stop Loss level. It’s ration may 1:2, 1:3 and sometimes it may 1:5 also.
To be a price action trader, you should learn about-
- Candle Pattern,
- Chart Pattern,
- Trendline,
- Support-resistance,
- Breakout,
- Money management properly…
Then apply your learning knowledge on live Forex market by making a trading method. You will be a profitable trader also…
Remember, practice and more practice…
Because, Practice makes a man perfect.
Thanks to all…