hi traders, i’m right now going through babypips school for the second time, and halfway through it, i came across Price action strategy and feel quite intrigued by it. It appears to me that PA seems to make alot of sense and does not involve the use of lagging indicators.
however, someone mentioned that PA is not for newbies as it would be too challenging & difficult to master for people who are new to forex, it’s more for savvy & experienced traders… is that true? if yes, could you please share with me the reasons?
right now, i’m thinking should i still continue with the babypips school and then go on to read up all about PA? or should i just go straight to learning all about PA? i’m really confused
i’m aiming to start demo in dec so i do not have much time left to do go through the theory aspect. i’m giving myself timelines for my forex journey…and don’t wish to drag on as i’ve wasted too much time on other things for the past 2 years when i was supposed to get on with forex.
FYI, i’m still learning the basic of forex and have not started on demo.
IMO price action, and chart patterns that represent price action is one of the best ways to trade.
I trade an even simpler price action strategy that works on a very basic principle of that if it’s going fast in one direction it will continue going fast in the same direction until it stops!
I think as you read more and more you will realise you have to make your own way in Forex and that many people’s opinions will differ. A lot of the time there is no right or wrong.
As for trading price action or indicators, this is exactly the same. 2 different tools to get to the same place. Some people use one or the other whilst others use both. Personally, I moved from an indicator based method from when I very first started, to one that looks purely at price action. I use no indicators (also known as naked trading). Honestly I think the trader themself is more important than a method.
I prefer Price Action to indicators, personally, I found that indicators lag and often disagree with one another, so didn’t help with my particular strategy much and just cluttered my screen. I prefer a clear screen where I can plot S&R levels etc. But to answer your two questions: I do not think that you can go wrong completing the Babypips School, most people won’t trade a strategy that utilizes everything in there, but it is good to have a rough idea what is out there. So I would complete it, then go on to specialize (like in lots of careers, start general, then specialize). Secondly, I don’t think that you have to be experienced to use PA strategies (indeed, some would say that PA is simpler to follow than many of the alternatives). Naturally, you will get better at using PA to trade as you get more experienced, but that is true of most things. I used PA in my first month of trading, and while my success rate was not what it went on to be, I certainly used it early on and felt that I had a good enough handle on it to trade it consistently. So if you like the look of PA trading, I would focus on it. Being good at it has more to do with researching it thoroughly and then practice, practice, practice than it does with being an experienced trader.
right now, i’m thinking should i still continue with the babypips school and then go on to read up all about PA? or should i just go straight to learning all about PA? i’m really confused
No need to get confused at this stage, plenty of time for that later
The school is a structured entry level course that gives you a good grounding in the subject, it would be advisable to finish it, it’s not that long.
While you go along make notes of subjects that get you interested, (like PA) and later you can study at a deeper level and build an idea of how you are going to go about the market.
The fact that you see sense in it and find it attractive will make it’s study a lot easier for you, we’re all aware I’m sure of the uphill struggle in trying to learn something that we couldn’t care less about.
All TA is based upon PA - computerised indicators just give an objective reading within a certain arithmatical framework. Support/resistance and pattern analysis is powerfull - but has the drawback of being more subjective.
My MACD will allways give me the same reading - however I’m feeling - and as long as I have a well defined system - theoretically Ill allways trade it the same way - making backtesting a powerfull tool.
How I decide to draw my support line on the other hand, has allot to do with how I’m feeling today
My 2 cents, for what its worth (and I’m no master), would be to complete the babypips school, and then to go for an introductory book on TA that covers both aspects.
I prefer using both (Price Action and very few Indicator).
Better find which suite your personality.
Just curious, has any one in here use Price Action only (Not even Moving Average, Fib, etc) ?
many thanks for all the replies and advice given for now i’ll continue to go through the babypips school & then read up & study on PA, it makes sense! thank you all and feel free to continue to share your thoughts in this thread
Finding “the right” S/R level is “the cat’s meow” in my opinion…
Most people that I know, pick a certain timeframe, and then “just look” at the price action and see where the swing highs and lows are, and then arbitrarily declare those S/R levels…
That method has proven to not work for me, as my eyes seem some things sometimes, and others at different times…
My method of finding S/R levels, I keep proprietary, however I do give them away daily.
And, NO, it does not involve “just looking” at price action, there are very specific rules.
Lately I have studied a lot of S/R lines. I now use several of them. It seems PA method, MA, and paying attention to S/R lines are better than using many technical tools. They just lag and almost useless IMO.
I think its good to pay attention to those lines that many others do because things move a lot when price penetrates those S/R lines, like pivot line.
