When trading any Market using Pure Price Action strategy two things must come to mind when trying to place position. It is either you are starting a new trend from Support/Resistance,Trendline and Channel when candle reversal patterns are formed or you want to place position in already existing trend.
This write up will address the second one. That is joining a moving trend. Whenever you miss a reversal do not jump into the trade hoping that it will continue to trend in that direction. The thing to do at that point in time is to wait for the price to hit next Resistance . When price hit the Resistance, how do you identify that it is a continuation pattern? The candle that hit the Resistance will always break-out from the Resistance line forming a very big candle with wide spread.If you observe that,wait for the next candle to open and close. It will form a very small candle at the Resistance showing either a doji or a pinbar. The candle can be one or three different candle that will retest the Resistance line forming a good candle continuation pattern.
This same principle is the same on a sell continuation pattern.
The image below you will you to understand the explanation above
thanks for post the continuation pattern i hope u will post more and also u were talking about a arrow indicator in your 4 post but can you attach that ?
EMOTION IS THE ONLY PROBLEM THAT IS ASSOCIATED WITH TRADING.
OTHER ISSUES CAN BE CONTROLLED COS YOU CAN BE TRAIN ON IT. BUT EMOTION IS IN YOU. IF YOU GIVE OUT GOOD TRADING SYSTEM TO 10 PEOPLE THEY WILL HAVE DIFFERENT RESULTS.THE DIFFERENCE IN THEIR RESULT IS CAUSED BY EMOTION NOT THE TRADING SYSTEM -Amos Igumz.
I know that so many traders will be happy looking at USDCAD daily chart but understand the principles behind price action before you trigger your position. Below chart will give you a clue on how to trade it.
last years, a have lost too much from this market. i intend to stop trading forever until i read your topic.
you give more confident , and i hope i can absorb 50% of your knowledge.
DECISION POINT
When you take a critical look at your chart daily, you will observe that it looks like massive fields where daily financial activities take place. In this massive field called Chart you are not supposed to use the entire field as your trading decisions points else you will be chasing shadows .Another example is the Football field, the players are restricted to the pitch alone not the full Stadium. In trading, map out an area for yourself and trade only the portion called Decision Point. If price hit the areas you mapped out, take your position but if price breakouts of the area wait until price retest it before you take any decision. Stop chasing price on the whole chart. I always tell traders that trading is not different from transportation system.
In any transport system there is a Bus (Price Movement), Bus-stops (Support, Resistance, Trendline and channel), Brake system in the Bus ( Candle patterns) and there is a Road (Trend) Now when the Bus move (price),the Bus will move in one direction and when it gets to a particular Bus stop identify with names (as we have Support, Resistance, Trendline and channel.) were you are waiting to board the Bus it will stop for you to enter(Entry point called Trigger) The Bus will continue(Candle Continuation Pattern) in that direction till it get to the end of the Road (Trend exhausted) and it will stop and reverse (Reversal candle pattern). If when you are at the Bus stop (Support, Resistance, Trendline and channel).Then the Bus did not stop for you to enter, will you run after the Bus to jump in?No. It can lead to death. The Bus Stop (Support, Resistance, Trendline and channel) are usually fixed therefore wait for the Bus to stop first before boarding. Now when the Bus stops, wait for the doors to be opened (candle Pattern) If the doors are not open (NO candle patterns) do not force it open) The chart below will give a clear understanding.
wow awesome dude u just explain everything so easy and yes finally i got trade forex market for passion not for money ! your ideas are outstanding all the time . thanks
