This topic contains 0 replies, has 1 voice, and was last updated by Andy Wright 1 year, 2 months ago.
April 28, 2017 at 2:31 PM #623
Price action trading strategy is considered to be the most profitable trading system in the world. If you look at the professional trader then you will notice that most of them are executing high-quality trades in the market using the price action confirmation signal. If you truly can master the art of price action trading strategy then you can see that within a short period of time you are able to lock the perfect trade in the market. Most of the novice traders in the financial market loses money in forex trading since they trade with the indicator based trading system. Indicators can be useful in forex trading if used properly but it should never act as the prime source of the signal in the market. In this article, we will learn how to master the art of price action trading strategy in the forex market.
Support and resistance level: Support and resistance level is considered to be the most important parameters in the forex trading world. All the professional traders trade the key support and resistance level in the market using the price action confirmation signals. If you are relatively new in forex trading then you should use demo trading account since it will save your hard earned investment in the forex trading world. But when you open a demo trading account make sure that you are going to the high esteemed broker like Saxo who offers an excellent trading platform and tight spread to their traders. Choosing the perfect broker in the world is very important since your trading performance will greatly depend on the quality of the service they provide.
Figure: Amazing features provided by Saxo
Use the higher time frame: Most of the novice trader sin the financial market fails to achieve success in the forex trading world since they trade the lower time frame in the market. It’s true that if you trade the lower time frame in the market then you will be able to execute lots of trades in the market but as a professional trader, you main concern should be high-quality trade execution. If you are new in this section then you should go for demo trading account and learn the art of price action trading strategy. It’s true that if you trade the higher time frame in the market then you will need to wait for a long period of time but without patience, you can never succeed in this industry.
Use market retracement: One of the best ways to trade the price action signals in the market is by using the minor retracement in the market. The well-known proverb in the forex industry that the trend is your friend will save you from losing many trades in the market. First of all, you need to identify the long-term prevailing trend in the market and once you find the long term prevailing trend try to execute your orders using price action confirmation signal. Once you are advanced try to use the Fibonacci retracement tools since it will provide you the key retracement levels in the market.