Hi guys. From now on I decided to post some upcoming trading analysis with price action. There are so many trading systems out there. Such as indicator based, technical based, indicator+technical based, Fundamental reading. I would not say that all of these are not good. There are many trading systems that has good accuracy that can make profits in those trading methods. Also keep remember there are many trading strategies that could blow up our accounts.
So the price action also a trading method that has great accuracy as well successful trading method among them.
However I would like to introduce the price action is kind of different than other technical based or indicator based trading methods.
Someone can say that price action means just a same name for technical analysis. Yeah that also kind of correct. But in my thought according my experiences I introduce the price action means reading the charts without any indicators.
Well, let me explain with a little examples. You all guys heard of chart patterns right. lets take head and shoulder chart pattern
As you know, once creates a head and shoulder pattern markets going up after it’s neck line as I shown in green arrow. and that’s the theory. That is what which has written in the theory book. So we just taking trades because it has in our theory book. Not knowing exactly what is happening.
But if you know, why the market is going up like that? What is the reason for that? it must have been gone down after creates heard and shoulder isn’t it? but it’s going up. So why in the theory book has written that it’s going up?
That’s what we should found out. Not just only stick with theory. So in my intention of price action, price action means finding that reason. We simply call it “reading charts.” Using price action, we are just finding why?, what is for?, what is the reason?. Finding behind the scenes of Forex market.
So once we know the reason, we don’t need chart patterns, or candle patterns for trading. We don’t need to wait until market creates such a patterns, We can analyze, we can look anytime the market what is going on. So according to my experience this is what called price action.
and one more thing,
If we want to take a sell entry, we should prepare it for when the market still in a buy trend. As well if we’re going to take a buy trade, we should prepare for it when the market still in a sell trend.
But the most of traders doing is,
Anyone can say that oh yeah yeah, this is a buy trend or this is a sell trend after created half of that trend in the market. But most traders cannot say that before the trend creates in the market. And it’s easy and more accurate to predict with price action.
From today, I’m hoping to post some of my daily analysis results up coming events etc. as well I would like to see your thoughts and analysis too. post them here. Good luck