Price action trading tips

Beginner Questions Candlesticks, Chart Patterns, and Price Action
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Could you share some price action trading tips?

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sure, check links below

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Thanks for your reply

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Follow these steps:

  1. Identify support and resistance levels.
  2. Learn common candlestick patterns.
  3. Use trend lines for trend analysis.
  4. Be patient and wait for confirmation signals.
  5. Practice proper risk management.
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Also, be careful of trying to learn everything.

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Just a question, and no rudeness intended at all, but since you said only a week or so ago that you know nothing about forex trading and have no experience of it, how is it that you’re now trying to “teach” us?!

I know that you work for prop firms, Merry, but I respectfully suggest that posting like this, trying to teach people here, really isn’t going to help your credibility or marketing at all?!

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I did share what I learned. Is there any problem with sharing my knowledge?

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In my opinion, yes, because you said only a week or so ago that you know nothing about forex trading and you have no experience of it, so it looks pretty bad that you’re now suddenly trying to “teach” us.

Most people who ask beginners’ questions here won’t know that, and might mistakenly imagine that you know from experience what you’re talking about, as many people here do when they explain things answering beginners’ questions. But in your case that isn’t true, and you’ve admitted it.

I know you work for forex prop firms but don’t know about trading, because you said so. If you’re here to learn, that’s fine, but please don’t try to build your credibility by trying to “teach”!

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love this !!!
the best advice I could give is to use top down analysis. When you look at larger time frames you can see patterns in what has happened for the day and for the 4 hours TF. Then go to your chart of what ever you’re trading look for the SOR, trends, is it ranging ? etc

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@Ranjithkumar877, perhaps this info is a bit vague for new traders. Allow me to expand on some of these points with some visual examples. Keep in mind none of this is easy, it takes time, practice and experience. So be patient while you’re learning:

  1. I like to find SR area that occur with the trend. These should be treated as zones, not lines:

    image
    image1146Ă—791 89 KB

  2. Candlestick patterns, which I don’t use personally but have in the past, can be shapes such as wedges, head and shoulders, double tops, etc. Or they can be single candles like engulfing, inside or pin bars. Some people use these by themselves or with their strategy as a trigger to enter a trade

3.Trend lines can be a visual way to see a trend. I sometimes find channels helpful:

image
image1417Ă—803 98 KB

  1. Confirmation signals, as I mentioned in #2 are usually part of ones strategy. Whether it’s a single bar, a price level, indicator or combination of indicators, it is something or a combination of things telling you that everything has lined up according to your strategy so that you can enter the trade.
    Here is a live trade I entered this morning based on SR. Remember that SR is a zone, not a line, so I sometimes draw a box that covers the wicks:

    image
    image1653Ă—842 103 KB

  2. Risk management is key to survival in this game. If you look at my trade you’ll see I put a stop loss under the SR zone. This can work against you if your SL it too tight, so give the trade lots of room to run. The SL I used is pretty tight, but based on my experience that’s a chance I’m willing to take.

Good luck and happy trading.

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Thanks to all

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Listen, Everyone wants to build credibility. So what’s wrong when I am trying to create? I’m learning and sharing my knowledge to make my knowledge better. In my opinion, it isn’t a bad thing.

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The time to share your knowledge is after you have some experience of trading; not before.

As several people have already commented, you have (unsurprisingly) been offering some bad and inappropriate advice, here, Merry. That helps nobody. Least of all yourself, when you’ve joined the forum very recently because you’re a sales person now working for forex prop firms, but you have no trading experience at all.

For heaven’s sake, what’s difficult to understand about this?! :stuck_out_tongue_winking_eye:

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for the best effect mix with fundamental analysis.

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Man, it feels easy learning from you. Thank you, sir. :smiling_face_with_three_hearts:

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In price action trading, mastering candlestick patterns and identifying key support and resistance levels are paramount. Look for confluence between different price action signals to increase the probability of successful trades, but exercise patience and discipline in waiting for clear setups. Effective risk management is essential to protect capital

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There are couple problems with Price Action.

,1 it is discretionary method so you can’t do the backtest

2 two traders will draw different S/R areas

3 it is possible that the trader will see different S/R areas after couple days on the same chart

4 with big account like 500k , emotions play big role

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Look at videos about liquidity zones and FVG (Fair market Value Gaps)? Do you have a charting service, I like Trading View, there’s a lot of free info, go to the Help Center under your name? But price likes to move (too me) from support to resistance levels, over-and-over, retracing the FVG zones on the way (a.k.a. “zig-zags”)? Simple concept, yet difficult to implement… because of our emotions? Someone said, “the greatest traders are the best losers (small losses)”? Someone else said, “…trading is the simplest thing… just pick up or down”, more like the very top or bottom of a range, not the in middle, play-it-safe?

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The following applies mostly to trend following systems

  1. Be aware of the trend + the strength of the trend on multiple time frames. You can use a simple ma
    ribbon for this. Look for the trend to be in sync on multiple time frames and pay attention to the
    strength of the the trend. You want it to be trading above multiple slow and fast moving averages on
    different frames. The steeper the angle the stronger the trend

  2. determine the strength of surrounding s/r zones. Does it show up on multiple frames, Is there a
    corresponding fib level, trend line, moving average or classical chart pattern? The more of these
    you can get lined up, the stronger the signal

  3. If price pulls back counter trend, wait for price exhaustion (look for stretched wicks), then a strong
    move back in the direction of the trend (confirmation) Ideally the high/low of the exhaustion wick
    should be a new swing high/low that shows up on multiple frames.

  4. After confirmation, you can enter at market if your brave or set an entry order at a level that is closer
    to the swing high/low but does not exceed it. Basically your hoping for a failed test of the new swing
    level after the initial breakout from the level. (think of it as a double confirmation) This is the
    preferred entry method if your basing your position size on the distance between entry and s/l. If you
    catch a big move you can do a lot of damage with minimal initial risk.

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Thanks you