Here are the 7 main things you need to know about Forex Price Action
INTRODUCTION
You can trade Futures Currency Trading using Price Action alone without any indicators. other indicators are based on price, so why not just understand the Price Action and leave out all the other indicators of futures currency trading.
Here are 7 things you need to know about Forex Price Action:
1) Keep trading simple and learn to read the market
Trading is simple if you know what to look out for. There is no need to overcomplicate trading and you certainly do not need lots of indicators
2) Read the trend
Trade with the trend, rather than against it. Trading with the trend allows you to maximise your profits when futures currency trading with the trend.
When you’re trading with the trend, it feels like the universe is helping you fill up your bank account.
Don’t try to pick the tops and bottoms of trends. This is where a lot of people make mistakes.
Once a trend has been established, it is obvious when a major trend changes if you know what to look out for, so that is another reason to trade in the direction of the trend.
3) Learn to read where the levels are
The Forex markets (actually all the markets) quite simply go from one level to the next, but not necessarily in a straight line, and this is what confuses a lot of people
So read the levels, and what the market is likely to do at those levels. Knowing how to read the levels gives your trading a HUGE advantage
4) Learn to read the correction
Markets move a certain amount, and then retrace or correct. There are minor corrections and major corrections.
If it is a major correction, then wait until the correction has retraced all the way back and is then moving back in its original direction before entering a trade.
This way, you are trading with the trend and you have also got ‘good value’ for your entry
So, the point here is that you need to understand what the market is doing, and what type of correction is evolving in the market as you are trading.
Once you know what to look out for, this is very easy.
5) Targets
Being able to read the Forex Price Action, allows you to read where your target is likely to be. This way you can ride the trend and not get out of the trade unless you have reason to.
Unless you have a target, how are you going to be able to determine what the reward for the trade is?
6) Learn to trade in correct conditions
The Forex is a volatile market and so it is not always possible to trade. Learn to trade when the conditions are right.
It is not necessary to always be in a trade. Preserve your capital and trade in the correct conditions
7) Manage the Trade
Being able to read the Futures Currency Trading Price Action will ensure that you are able to maximise a trade profit, allowing you to stay in the trade until market structure tells you that the trend is turning, or until you have reached your level
Jasmin Agura
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