Not new to Forex but it’s time to clock the game…
Price action looks very interesting does anyone have any views regarding Price action?
Price action is the bloodstream of the market. Price is set and re-set thousands of times per day by the transactions the big banks make - they have the best analysts and economists, the most powerful computers and the fastest news flow so it is vital to see clearly what they are doing.
Anything else you add to your charts or trade decisions must be to answer a specific question or issue which price alone cannot resolve.
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Thanks Tommor much appreciated
As usual @tommor is spot-on. I’d like to expand on this a little if we can. If we can agree that price action is king, I’d like to hear a discussion regarding how our traders most often use it. Is there a certain timeframe you favor? What kind of price action strategies or tools do you incorporate into your overall trading strategy?
For example, I’ve just recently started leaning heavier into it as an entrance indicator for short-term trades. Among many other things, I’m looking for (a long-position example) Bid is above the highest high in the last X periods, and the lowest low of the same last X period range is above the highest high of the preceding X periods before those. Because I do this all in an EA, that’s an annoying way of saying “as price hits new highs, its intra-period retracement doesn’t break below previous highs”. Same of course applies inverse for short entries.
It’s one of many checks in the strategy, and it’s really basic, but I’m interested in what others do with price action. Is there a particular pattern you look for or favor?
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@enickma I have not yet understood PA is there any videos you can recommend?
I tend to naked forex trade but now I may incorporate PA with Stochastics…
There are definitely better people here than me to explain, but I think it’s important not to overcomplicate the concept in your head. Trading “price action” basically just means that you’re making trading decisions primarily upon the movement of price itself, and the candles that form as a result, rather than lagging chart indicators. Anecdotally, I’ve noticed that price action traders also tend to have an indifferent view of fundamentals, assuming that it’s all already reflected in current price movement.
It can take MANY forms, from inside candles or other candle patterns/relationships to reversals, or momentum checks like I described above. Price movement is also interpreted differently by different people of course. That’s why I’m so interested in all the different ways our traders use it. There are several people who will tell you to throw out all your indicators and just trade PA. I personally have some indicators I love to use in concert with price action triggers, but everyone has their own style!
This article isn’t specific to Forex, but I think it gives a good conceptual overview
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Thank you very much… Much appreciated…