Trading with price action gives also satisfaction when things going well, because you have to think and outsmart others. Not so much when you just have to enter when one thing crosses other thing, or some other things shows over 70.
Hello haridas100, I like the way you trade as you first identify the trend in 4H and then entry from H1. We have same strategy but I just focus on GBP/JPY pair . Congratulation and good luck .
Thanks, good luck to you too.
From 13.6.2015 I start using fundamental information also by following Jarratt Davis commentaries and news.
Technical analysis based on indicators is like driving and looking into the mirror through binoculars.
Price action technical analysis is like driving and looking into the mirror.
Fundamental analysis is like driving and looking ahead.
I think price action traders will strongly disagree with you here, me included, but everyone has their own approach and ideas and will face different results.
I think this video is valuable.
I would rather listen to someone with verified track record…
New addition to my trading from 16.6.:
This was missing, the reason why prices move. Not only observe it move, but explain long term moves.
Currently GBP and USD are strong. NZD and AUD are weak. EUR is too volatile.
So I combine strong currency with weak currency with conviction in what direction will it go.
According to Jarratt Davis:
Currency Update:
The USD remains the strongest currency in the longer term. The market is expecting the Fed to raise rates in Q4. Recent NFP readings have been positive and inflation appears to be trending higher. Although we expect bullish sentiment on the dollar to remain in the near term, it is near its long-term highs against many counterparts and therefore may be susceptible to pullacks - such pullbacks will likely provide buying opportunities. The recent FOMC statement showed the Fed are on track to raise rates in the context of an improving economy, however USD saw heavy selling as the economic projections for the FFR in 2016 and 2017 were scaled back.
The EUR remains fundamentally weak due to QE and the ongoing Greek debt issue, however recent inflation and unemployment numbers have signalled that a recovery is on track, which gave the currency some temporary positive sentiment. There is currently a high correlation between bund yields and the euro; bunds should be monitored if trading euro. If Greece fails to make any of their imminent repayments, the euro will likely be pressured. Conversely, a deal with a solid resolution will precipitate a relief rally.
GBP is looking at a rate hike around the middle of 2016 and is therefore a fundamentally bullish currency in the long term. The recent jobs numbers showed much better than expected average earnings figures and this is very bullish for the pound as it brings forward the timing for rate liftoff. We are also aware of two of the nine MPC members being very close to voting for a rate increase. GBP has had a strong rally over the past several weeks and is currently near long term highs against most counterparts.
AUD: Low commodity prices and a slowdown in China has put bearish pressure on the AUD. Overall the bias for AUD is on the bearish side of neutral, until we see more data. Language from Governor Stephens recently has been dovish . A resumption of the downtrend in base metals will also see AUD pressured.
NZD has a new official cash rate of 3.25% after the RBNZ cut rates on June 11. The Bank has left the door open for further easing and as such the Kiwi dollar is a bearish currency in the medium term. The recent GDP reading showed a huge miss and this adds weight to the chance of another rate cut, with some banks calling for two more cuts in 2015. Kiwi is at multi-year lows.
CAD remains on the weaker side of neutral. In the absence of unexpected data, CAD will take most of its direction from any significant changes in the price of West Texas Intermediate crude oil. When there is no oil-related news, the oil price will generally move with negative correlation to the USD.
JPY remains bearish due to QQE. Yen weakness has accelerated recently on the back of USD strength. Yen is at a 12-year low against the dollar. Sentiment on the JPY can turn bullish quickly if there is severe uncertainty in the markets. Language from the BOJ shows they believe a recovery is beginning and QQE is having its intended effect. Recent positive GDP readings have dampened speculation of any additional easing.
CHF is fundamentally a weaker currency given the SNB 's negative interest rates. It is highly susceptible to volatility due to SNB potentially intervening to weaken the currency as it tends to strengthen on safe-haven demand. CHF often will take direction from the EUR with which its correlation over the last 50 trading days is approximately 75%.
