Price Action Forex trading method Tutorial. PA Strategy

In today’s lesson, we are going to demonstrate an example of an H4 chart offering entry after consolidation. The price does not head towards the breakout direction after triggering the entry as expected. The question is whether we hold the position during the weekend or close the position. In today’s lesson, we are going to demonstrate an example of a chart producing a double top and offering entry. The breakout does not look that promising though. However, the price heads towards the breakout direction and makes a long bearish move. In today’s lesson, we are going to demonstrate an example of trendline trading where the price trends towards the South by obeying a down-trending trendline.

forex price action

In an uptrend, the price rises when there are higher swings and higher lows. In a downtrend, there are lower highs and lower lows. The peaks and troughs of these trendlines remain between the support and resistance lines of a price chart. In the daily or 4-hour chart, we will wait for the reversal candlestick pattern for taking the entry. For beginner traders, price action trading means the simple concept of selling from the resistance and buying from the support. It is common knowledge that any technical indicator, be it moving averages, or oscillators such as Stochastics or RSI, all these indicators tend to use price as the base.

This is an illustration of a bearish as well as bullish harami price action pattern. Harami Price action strategy implies defining important price levels and then watching the harami candlestick pattern as an opportunity to enter into trade. Firstly, you must master only one price action forex strategy. With this, you will learn the inside out of price action set up.


Means one plan can be usable by a person at the same procedure might bring loss for another trader. All trading strategies have some unique methodology and unique characteristics that do not compare with another.

forex price action

Nobody teaches this subject the way you do, I believe you are the best. The event creates an excellent opportunity for us to catch a nice explosive trade – it’s one of my favorite breakout strategies. I really don’t think many traders consider this, and just pull the trigger ‘in the moment’. The higher highs and higher lows give a nice clear picture to the left, which builds value into the bullish trade idea. Candlestick signal , averages out have about a 20% expected success rate – which in real life trading terms, is like jumping on the bankruptcy bus.

Using Weekly High or Weekly Low in the H4 Chart Trading

Price action trading is not about winning every single trade, but instead being able to make profits from using a strategy that makes money overall. We are a team of disciplined and patient traders and we know what we’re doing. As a result, we’ve always been able to come out profitable, unlike other similar services.

  • Significant support and resistance levels are those levels that are formed in the large timeframes like the monthly, weekly and daily charts.
  • Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.
  • Our support agents will get back to you in the shortest period of time.
  • A key spot of support is getting closer, however.
  • So when you see this forming in an uptrend, expect a breakout to the upside.

So for new traders and beginners, it is suggested to use a trading strategy that is not complex at that is easy to you but profitable. However, successful traders use the same trading strategy what new traders intend to use. There is no rocket science for magical methods that dream money to the successful traders only. Forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment.

Psychological Levels in Trading

I presence of the opposite party reduces the market momentum in the corrective structure. The impulsive pressure comes when the market aggressively creates new highs and lows by following the same direction over and over again. The same thing applies to the bullish market as well. If the market moves within a robust bullish trend, any break of the resistance might make it support. Identifying the right trading strategy is the key to be successful in the industry. There is a lot of retail trading strategy available on the internet.

#2: Encyclopedia of Chart Patterns

I only use trends on a unfussy chart and just trade 5 To 15 minutes. Candlestick signals, and other trades will often form within these conditions, and may be tempting to trade – but are just too unreliable in an unstable market. When the market seizes up, and the flow of price action stops – we can get these horrible, hostile, churned up periods of consolidation that create ‘minefield’ like signals. If I could illustrate my point here, I would show two charts.

From the weekly time frame we gather the key information I would normally bring down to the trading time frame. In today’s lesson, we are going to demonstrate an example of a double bottom, which pushes the price towards the North. The example also proves an old theory of support becomes resistance or resistance becomes support after a breakout. In today’s lesson, we are going to demonstrate an example of a breakout at a weekly high. The price consolidates afterward but fails to make a breakout at consolidation resistance.

The next stock market sector to watch, with stocks going nuclear

Priceaction team is dedicated to ensuring consistent profitability for its clients. As seasoned traders, we simplify the trading process for our clients to avoid confusion and losses. None of the forex price action information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Any opinions made are subject to change and may be personal to the author.

This is something that indicator based technical analysis wouldn’t be able to reflect as accurately as with price action. In today’s lesson, we are going to demonstrate an example of a daily chart, which ends up offering an H4 entry by producing a Morning Star in the daily forex price action chart. The Morning Star is one of the strongest bullish reversal patterns. The combination traders may make full use of it too. This is what we are going to demonstrate in today’s lesson. We are going to demonstrate an example of trendline trading in today’s lesson.

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