Tag: price action

When to take retracement/pullback signals

This would be the 5th article of my strategy, if you haven had a chance to read them, please do, you’ll get a much deeper understanding about what you are about to learn.

Here are the links:

Important aspects of my strategy
Market Dynamics: How the market moves
When to go Long and When to go Short
How to find profitable Breakout Signals

price action, pullback, retracement

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Here is when to trade the AUDUSD (and the main principle of price action)

technical indicators

Yesterday I received an email, a trader from Europe asked me if it was a good time to short the AUDUSD…

I told him that not yet, from the way I see it, it is trading near an important level and we still dont know whether the market is going to get rejected from there or break through that important level…

Earlier this morning he replied back, he was a little angry I must say… And said something like “I thought you were a good trader, how come you dont think about going short right now if it has been falling like a rock…”

AUDUSD, forex, price action

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Rules to determine the trend of the market using price action & support and resistance

Have you ever wondered whats the best way to determine the trend of the market?

There are plenty of tools, indicators, etc including:

  • Technical indicators such as RSI, MACD, Momentum, etc
  • Fibonacci retracements and extensions
  • Elliot Waves
  • Gann cycles
  • Other tools

You name it… Some of them are pretty subjective, and some other techniques are good.

But the question remains, among them all, which one is the best?

I don’t know about you, but I think trading is not a game, and I rather use something objective…

So to determine the best tool, I’d recommend you to take the following considerations. Make your strategy:

  • As objective as possible (there will always be a certain degree of subjectivity)
  • As simple as possible (KISS principle)

Once your strategy (or system) these two characteristics, you’ll have a system with a very good profit potential :)

Ok, so now, want to know what my take on this? What is as objective and simple as possible?

You guessed it.

Support and resistance levels plus price action. 

In todays article, I’m going to show you how you can use support and resistance levels plus price action to make a chart talk to you, to show you how to convert a chart like this one:

Naked AUDUSD chart

Into actionable and reliable trading advice.

AUDUSD Analysis, price action, support and resistance

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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:

Price Action

 

GBPAUD Analysis, price action

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Price Action: A Short-term trading system

Trading based on price action has become popular in these last years, mainly because of traders acknowledging that trading based on technical indicators such as moving averages, RSI, CCI, Stochastics and others have a lagging factor that makes us enter late, when the move already happened.

This happens because technical indicators, all of them, use the previous market action (i.e. last 21 periods or candlesticks) to calculate the final reading, and what happened in the last n-periods has little or nothing to do with that the market will do, say, in the next 10 periods or candlesticks.

In other words, if the market went up on average in the last 21 periods, the indicator reading will point up or give you a long signal, but that doesn’t mean that the market will continue its way up in the next 10 periods.

In order to adopt a Forex price action approach we need to take in consideration 3 main aspects: pressure, level and significance.

1 – Pressure

price action

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Video: Entry, SL and TP orders using Price Action

In this video we review the price action strategy and focus on how to enter the market, and set the stop loss and take profit orders.

Feel free to comment.

entry, forex video, price action, stop loss, take profit