For traders market technology is a valuable tool. Again and again you will find that it is indispensable above all for liquid assets such as indices and currencies. Each dealer will see the technical setup. What you make of it is usually an individual ability. It is based on features such as experience, observation and risk-taking. In this context, you should not only consider market technology as a technical analysis. The price action strategy is based on the presentation of market dynamics. Getting to the purely technical setup does not give you any advantage over other dealers. As a trader you have to learn to play out your individual characteristics. It is necessary to train them first.
Learn to understand the price action strategy
If you use the Price Action strategy, you can exercise a very intuitive trade. As a rule, it is only possible to learn the dynamics of the market through observation. If you have already been able to register a certain movement as a dealer, you will feel that a set-up is repeated. There is the option to play the price action strategy in addition to known technical patterns. Particularly favorable is the time when certain changes occur in a market environment.
Technical indicators do not play a role in classic price action trading and you only trade according to the Kurscharts. In price action, the psychological factors also play an important role. They reflect their own assessments and expectations, as well as those of other market participants. For example, the search for psychologically important price markets is crucial. At a certain value, they are under or exceeded. In this way, further reactions are released. To get the most out of the information from a chart, use bar or candlecharts in the Price Action strategy. The price movements are best shown in this way in the illustrated time segments. Using this method, you can see the dynamics of a current development. You can use these observations for your investment.
Trend lines help with interpretation
Over time, you will develop a certain intuition to correctly evaluate course information. For the most part, the statements for investments are only of a short to medium-term nature. You can use the Price Action Strategy to identify a lucrative entry point. However, you must then act quickly. Otherwise the train leaves without you. Although no technical indicators are used for the Price Action strategy, other tools are available for interpreting the course histories. You can use Fibonacci Retractions, Pivot Points, Classic Chartformations, Supports and Resistances as well as Trendlines and Channels.
Forex Trading – Price Action Strategy – Developing the feeling for the courses
For the analysis, use an empty chart where only the course is displayed. Then use your own explanations like supports, resistances and trend lines. They record these observations on the chart. You can not learn the price action strategy from tomorrow to tomorrow. Due to the lack of key figures, your own interpretation services play an essential role. Motion sequences and simple technical patterns are the main focus. To recognize promising patterns and formations in your chart, you need some practice in the Price Action strategy. Over time, you will develop experience with the method to maintain a sense of market dynamics.
The Forex Trading Price Action Strategy is aimed primarily at investors who have been trading for a long time. For newcomers who need to gain experience in this field, they are not recommended. The method is based on individual observations and requires a certain period of time to successfully apply the price action strategy when trading.