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How to use the reliable price action confirmation signal

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  • How to use the reliable price action confirmation signal

    The price action trading system may be a little hard for the na´ve traders. But with proper devotion and dedication, you can easily master the basics of this system. Many people in Singapore have changed their life just by learning to trade the market based on the candlestick pattern. Those who are new to this profession, might not understand the details of price action trading system. This is nothing but executing the trades based on the Japanese candlestick pattern. Memorizing the complex pattern of the candlestick is very hard but with the help of the psychological factors, you can easily avoid this problem.

    Psychological factors to find the pattern
    Do you know why you the candlestick greatly differs in different trading time? Due to the variation in closing and opening price, you notice a difference in the candlestick pattern. To make things easier, let’s give you an example of the bullish pin bar. A bullish pin bar is formed when the price of a certain asset drops dramatically and eventually the bulls gain control of the market. They push the price towards or above the opening price and helps to form the pin bar. Once you start to understand the key reason behind the formation of the candlestick, psychologically you will have an added advantage in trading. This will help you to understand the price pattern in the raw chart.

    Find the key support and resistance level
    Those who trade the market in the minor support and resistance level is always losing money in CFD trading. To make a consistent profit, you have to find the key trading zone in the daily time frame. Those who think lower time frame trading is more profitable, have a lot to learn from the experienced traders at Saxo. They never trade the market in a lower time frame since they consider scalping as a very complicated task. You can assess the risk factors in scalping by using the demo account. Trade the demo account by using the 1 minute or 5-minute time frame and try to make a profit consistently. After a few weeks, you will prefer a long term trading strategy.

    Use tight stop loss
    If you intend to trade the market to live your life, make sure you trade the market with a tight stop. Being a new price action trader, you may thing the stop loss is set too close to the entry point. But this is normal. You can place a trade with a few pips stops based on the price action signal. When you place the stops, try to consider the risk-reward ratio. Unless you are trading with 1:3+ risk-reward ratio, chances are high you will blow the account. Those who think 1:2+ risk-reward ratio is enough is getting the bigger picture of the trading profession. If you trade with a 1:2 risk-reward ratio, you will have to win more trades. This will eventually make things hard in trading. So, keep calm and learn to use the stop loss before you consider trading as your fulltime profession.

    Conclusion
    Trading the price action signal is very easy. Follow the steps of this article and trade the market with discipline. If you ever get confused, open a demo account and try to develop your skills without doing the complex calculations. Always remember, you are here to make a profit. Unless you push yourself to the edge, you are not going to learn new things. Once you start learning new things from your trading mistakes, you will gradually develop your skills as a fulltime trader. Try to find trades with a high-risk reward ratio since it will allow you to lose more trades. Forget about complicated EAs and bots and focus on the manual art of trading. Play safe and trade the market with proper discipline.

  • #2
    Lot of info you mentioning here avaliable in details in youtube - your goal is really to setup all that in order for it work correctly and everyday. But your broker should help you to understand all that patterns anyway. All that big unknown terms for you. See my point ?

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