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Showing results for tags 'price action'.
Found 37 results
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Forex markets are inherently contrarian. This means that they are regressive and have a natural tendency to pull back to the mean price. This is a big reason why so many beginning traders lose all their trading money and give up. The fact is that most of the time when it feels safe to enter the market it is probably not. When a move in the market is greatly extended in one direction and looks like it will keep going this is usually the exact time it is about to fall back and correct itself. This extension also happens to be the time most beginning traders tend to enter the market. It often takes months or years of losing money before traders learn that they have to wait patiently for the market to contract before entering, and many traders give up before they finally realize this truth. Most indicator based trading systems simply do not work in strongly trending markets. They will give you a sell signal long after a market has started correcting back down and the correction is almost over. Sometimes they give you a sell signal at the very time the correction is over and you should be looking to get long again, or vice versa. If you know how to tell based off pure price movement when a market is exhausted or when it is ready to break out then you have the keys to building a highly profitable and consistent trading method. Price action analysis is the best technique for learning to profit from the forex market. There are usually tell-tale signs a market is ready to correct or the trend is ready to resume that are readily apparent through the analysis of price action. All you really need to know are a few simple patterns and basic chart support, resistance, and trend lines and you have enough information to put together a profitable trading method. Some people try to program indicators and even develop new ones because they mistakenly believe if they put more math and study into their trading technique they will be further ahead of other traders. This simply is false. While you do need some sort of education in technical analysis and price action, it doesn’t need to be complicated or involve programming expert advisers and other fancy non-sense. Once you develop a keen eye for price action setups you will be able to tell if it’s unsafe to enter a trend or that the trend is ready to resume. It’s all right there on the chart, you just need to be shown the way by someone who has walked in your shoes and made it down the path to trading success. Price action can be a great aid to developing your discipline in the market and shaping a relevant market perspective. If you are just starting out and this is one of the first trading articles you have read than I strongly urge you to check out an education in price action. Go to YouTube and type in “forex price action” or “forex price action strategies” and see if you like what you find; there are many good free sources of price action information on the internet. Price action analysis has been the key to my success in the markets and I hope it will be the key to yours. Nial Fuller is an expert on price action forex trading strategies, you can visit his website at Learn To Trade The Market
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Whatever method you use to analyze the forex market one thing is for sure; confluence of signals will lead to greater accuracy for any given trade. Most traders rely on multiple indicators, price levels, or price patterns in their trading method. A solid trading method will require your entry trigger to include a convergence of more than one of the tools you use to analyze the market. When this happens it is called confluence. Confluence of signals is the best way to build your confidence in a trade and gives you the best chance at profits. Where many forex traders go wrong is jumping the gun and entering a trade without confluence, or when they are only seeing one aspect of their entry parameter happening. The urge to trade after a series of winners can be especially strong. This is the exact time that many traders due the most damage to their trading accounts. If you find yourself feeling this way the best thing you can do is remove yourself from your trade station. The next best thing you can do is to read over your trading plan again and stop to ask yourself whether you are truly seeing a confluent trade setup or just acting off emotion. Waiting for confluence of signals means you must have patience. This will require you to pass up many trades that might work out. The point here is that you are acting like a tiger in the wild by laying low and waiting for the most obvious trade to come along with the most confluence. Tigers don’t go running after every gazelle that comes their way, they sit and wait for hours and sometimes days or weeks until the perfect opportunity comes along. This way they give themselves the highest success rate possible with little wasted effort. It is very important that you act like a tiger in the forex market and conserve your trading account by sitting and waiting for the best trade setup with the most confluence to come your way. Traders often think by trading more they are taking advantage of more opportunities and giving themselves a better chance at profiting. This belief is fundamentally wrong but it is how we are wired as humans. This is what makes trading so difficult. You have to realize that not being in the market is a very important and valuable position because you are not losing money and are waiting for a profitable setup to come along. Waiting patiently for all your entry parameters to come together is immensely important in the world of forex trading. Of course first you must define what your trading parameters are. If you look at say a couple price action signals, Fibonacci levels and support and resistance levels, then the best trade setup would be confluence of all of these signals. If you only get one or two of them then you wait. You wafornt the trade setup that is like the baby gazelle in the African plains; just limping along and ripe for the picking. Don’t fall into the trap of thinking that more is better in the forex market, I promise you it is most certainly not. Nial Fuller is an expert on price action forex trading strategies, you can visit his website at Learn To Trade The Market
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Japanese candlestick charts are the most visually rewarding charts to use when trading the forex market. The clear depiction of price action that they provide is second to none. Japanese candles provide a different aspect to charting in that they allow you to see the force with which either the bulls or bears won for a given period of time. There are numerous forex candle patterns that you can use when trading price action in the forex market. Candlestick patterns are preferable to standard bar charts because they allow you to apply all Western technical analysis techniques used with bar charts and also provide a variety of their own forex candle patterns, not to mention they are just much easier to look at. Candlestick charts are by far the most popular form of chart used today in the forex market. Using forex candle patterns to navigate the market is a great way to make sure you see all relevant reversal patterns as well as trend continuation patterns. The forex market is open 24 hours a day 6 days a week; this means there are many more price action setups to take advantage of than what other financial markets provide. Japanese candles work great in the forex market largely because there is almost always a trending market somewhere in the forex market. By using candlestick patterns in forex you can easily spot strongly trending markets and find great high probability setups into these trends. Forex candle patterns also allow you to spot market reversals at the earliest possible time. Forex candle patterns visually display the supply and demand situation for whatever currency pair you are looking at on any given time frame. This colorful visual representation of supply and demand makes price action analysis much easier and more relevant. By being able to quickly and clearly see the force with which the bears overcame the bulls or the force with which the bulls overcame the bears you will become a better price action analyst and the discretionary or “art” part of forex price action analysis will become much more accurate for you. This accuracy will spill over to your psychological mindset and make you a more calm and confident forex trader. Japanese candlestick patterns are just as relevant to the forex market today as they were to the rice traders in Japan who invented candlestick charts back in the 18th century. Traders have been using these charts for hundreds of years to help predict future price movement, just as the rice traders in the 18th century obviously did not have any lagging indicators, you do not need them either. Price action trading via a stripped down and raw price chart combined with forex candle patterns is all you need to become a successful forex trader. Candlestick patterns in forex combined with price action analysis is all you need to develop a simple yet highly effective and profitable forex trading plan that will allow you to maintain clarity and objectivity while trading forex. Nial Fuller is an expert on price action forex trading strategies, you can visit his website at Learn To Trade The Market
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Hi, I would like start a thread about price action analysis. I have recently started trading forex strictly off of price action setups alone and I have found it much easier than using indicators or any other system. I am wondering how other people use price action to trade from or what degree of success they have had using this method to trade forex or other markets. Has anyone heard of a guy named Nial Fuller? He has a bunch of videos on youtube that I recently came across and they seem very helpful. He also has some good free videos and info on price action on his website. Anyways, I would like to hear what people think about price action and maybe post up some charts of specific price action setups I have learned. Thanks.
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-------------------------------------------------------------------------------- As an intra-day trader, I look to go long or short depending how price reacts to a major level. IOW, I stay 100% neutral bias and only expect a good move from a level, not a specific direction. That way I can profit from bounce or breakout. In my experience, three scenarios related to price action are common at a major level: 1) Bounce ( reversal) 2) Breakout (price runs through level) 3) Chop (price chops around level, then finds direction) The question then becomes, can each scenario be predicted to any useful degree? And if so, how? What are your strategies with Price action and/or Scalping good also for Dax-future?
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Lateral Formation Lateral Formation is a price pattern where bar 2 and bar 3 are within the HL of the 1st bar. The Lateral will continue until 2 consecutive closes outside of the 1st bar HL in the same direction. for background discussions, please visit: http://www.traderslaboratory.com/forums/f34/price-volume-relationship-6320.html note: This EasyLanguage indicator was written in MultiCharts. I have not tested it in TradeStation or other compatible programs. Please refer to your users manual for importation instructions. Lateral_Formation.txt
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When I started my Forex trading career I wish I had this information I am about to share with you. There is a lot more information you will need but these are the top 4 1. Don’t be afraid to pay your dues There are no short cuts when it comes to trading. Learning the market and how it behaves is most important to your success. For some reason people find it easy to believe that they can get away with less time and effort. Everybody wants the fast money. This is why people will waste their hard earned money buying trading robots they think will make them money while the sunbath on the beach. This is a fairy tail. A nice thought but not realistic. Learning Price Action is the real key to success. 2. Don’t buy a platform or magical software Many new traders are fooled from the beginning into thinking that high dollar software will somehow make them a better trader. This is not the case. I took the bait and used E-signal when I was a newbie and threw my money away. Its true they had a super price feed but most all brokers offer a platform with your account. The important thing to do is investigate where they their price feed and compare it to some others. You can do this by getting a few demo accounts. Then compare to see if ones prices lags the other. 3. Keep It Simple Stupid or KISS I was fortunate enough to learn this early on and it has helped immensely. Most new traders believe there is some magical indicators that will make things easy for them. Most use a combination of many and clutter up their charts so they can barely see what is going on. Some even have designed their own. The less you have on your charts the better. All indicators are lagging and actually a distraction rather than a help. Most institutional traders use Price Action alone and in order to play with the Big Boys you need to think like them. 4. Investigate many brokers before you open an account. There are so many brokers to choose from. Not only is the price feed important. Check on their execution and the size of the firm. Bigger is better here. With new rules about to be enforced you need to be with a well funded broker to protect your deposit. Check the size of their clientele list and read current reviews. Nial Fuller has been successful Forex trader for many years. He started studying price action when he was 15. Now at 25 he has traded at a major firm for over 6 years. To get his free video tutorials visit this link Trading Price Action Website
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Price Action Trainer This indicator helps the new traders to tune-in to the price bar formations as the market unfolds. It reads the Price Action at the micro level, then prints the formation names on the screen. Formations: ib = Inside Bar FTP = Flat Top Pennant fbp = flat bottom pennant ccc = congestion, convergence, centering This indicator is in beta; comments and suggestions are welcome. I will collect all the suggestions and make an update when possible. You are invited to post your renditions as well. If you want to be notified of updates, please make sure you press the "Mark as Installed" key. The code should run in MultiCharts and TradeStation, but I am not sure about OEC. I have uploaded a PLA file for MultiCharts. TradeStation users: if you don't know how to import the code into your software, please spend 5 mins on your users manual to find out how. Price_Action_Trainer_(MultiCharts).pla Price_Action_Trainer.txt
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Shifted There is a school of thought that today's price action is just a continuation of yesterday's. ...and that if you shift today's price bars so that today's opening price matches with yesterday's close, you will see a continuation of yesterday's price action. This indicator does just that: it will shift today's price bars by the open/close difference. Note: this chart is for price action reference only. Please don't trade with this chart or you might get a very disappointing fill. It is recommended that you cover up the price scale when you read this chart. Shifted.txt Shifted_(MultiCharts).pla
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Hi guys, Just checked the economic schedule for tomorrow. From what I see the rate is schedule to be released at 8:30am ET. Is it me or it's not the normal hour right? Looks like USD, CAD, EUR and GBP will all have their own news. This is probably the first time since started trading currencies I've seen so much news coincided at the same time. Was this intentional?
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Hello, My name is trading4life. I just joined this forum.
