Take a look at this price action system
One of the main problems every trader runs through is: where to open a trade. So I’ve been working in this system, which tells us in a very simple way, where to get in the market.
There are plenty of reasons why I don’t like to take trading decisions based on technical indicators: like all of them have a lagging factor, etc. But the most important one is this one:
At the end every single indicator is based on price itself, so why would I base my trading on something (like a technical indicator) that represents a distorted view of price itself? It makes no sense (at least to me).
Anyway, let me show you this chart:
This is the GBPAUD chart. You know I’ve been monitoring this cross because of the clear way it’s been trading in the last months (just review some of my previous posts and you’ll see what I mean)
So there are two things you need to know about this system:
- I have taken time out of the equation. Time is no longer important in this system, it doesn’t matter how much time it takes the market to move from one level to the other.
- If I take time out of the equation, then “price movements” are the most important factor in this chart.
Take a look at your GBPAUD chart and see how different it is from the chart above.
So what do you think?
If you asked me the same question, I’d tell you it is probably the simplest entry system I’ve ever seen.
Before I go, let me remind you that we still have some important fundamental announcements this week:
German Constitutional Court Ruling – According to Forex Factory, The German Federal Constitutional Court is due to announce a ruling regarding the constitutionality of the European Stability Mechanism.
FOMC statements and Economic projections
Now it’s your turn.
What do you think about the system?
Let me know your thoughts about the system and about the entries.