The use of price action trading is the best way to see the condition of the trend. Price action is also one proof in identifying market momentum and volatility. If price action is so unreliable, why do not we try it? How the initial steps to try to price action? Let’s take a look at his review below.
You need to know to trade with price action strategies can be applied to any time frame, but it is advisable to use a daily time frame considering the accuracy of the data and the resulting signal can be relied upon. Besides price action is also suitable and easily applied in the forex market because it is more common continuous trending patterns compared with other markets.
To be able to practice this way successfully condition already know and understand very well about “forex basic knowledge” such as: the direction of price movement called trend, the relationship between price and resistant barriers so called resistant, the relationship between price and the support price which is called support and whether prices are in overbought area called were in the overbought or oversold area called oversold.
Price action there are many versions and variations of it. One example is the pin bar, fakey (false / fake) and the inside bar. Price action itself is an abbreviation of the price itself. Movement of prices (price action) can be likened to tide water, ranging from ripple ripples, then waves of small wave, tide and swell height, back into small waves and ripples. The nature of price movement can be distinguished:
- Trending, prices tend to lead up or down
- Volatile, volatile price moves quickly
- Sideways, prices are flat
Picture below is the shape of the candle bearish and bullish pin bar pin bar, and an example of a bullish pin bar formed on the uptrend price movement, beginning with the formation of two bullish pin bar at the end of a downtrend. For a downtrend market analysis as such a direction opposite uptrend.
As his case a book, if you do not know how to read it, you will not know what the actual content or the story told in the book. If you do not know how to read the price action in the market, then you will not be able to understand and digest ‘story’ delivered price of the market. For that look at how to do the following for use in the open position:
- Consider candlesticks will soon turn
- When the candlestick turn waiting close and formed a new candlestick
- When a new candlestick open, wait a while before making the open position
Learn and understand the good things above as the basis for trading are important for successful trading. To find candlesticks will soon turn was noticed candle 1 and 2 as confirmation while the third candle is a good time for the entry point.