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7 Golden Forex Tips To BOOST You Along The Way In 2022

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  • 7 Golden Forex Tips To BOOST You Along The Way In 2022

    Have you read this far? Appreciate your time and effort then. Anyways, I bet that the concept behind price action trading is now at least 70% clearer than before.


    And... if you ask us, that's the starting of something BIGGER.


    As a token of appreciation, we'll share 7 SUPER effective price action trading tips to make the wholesome trading journey even more accessible. Therefore, let's get going already, shall we?


    1. Prefer Multi Candle Patterns


    Pursuing more patterns over a single one might be the ideal choice as it has been proven several times when it comes to the reliability of candlestick patterns. Therefore, using three ways instead of using one would bring BETTER results.


    An example of sorting things out:


    Have you guessed the charting pattern yet? Well, if you didn't, it's known as the "Head and Shoulder" pattern, which is probably a GO-TO trading indicator for numerous retail traders.


    Apart from that, it would help if you also preferred using top-tier indicators like the double top, bottom, and cup & handle.


    Wondering why you should prefer them over other indicators?


    Simple! These indicators deliver consistency while opening high probability trades. However, that doesn't mean the other hands are flawed or ineffective and lack consistency.


    After all, the term consistency matters the most regarding online trading.


    2. Don't rush; wait For Confirmation


    Theoretically, waiting for confirmations means entering the trading market with 100% consciousness, not the other way around.


    As per PRO market traders, opening trades after the patterns get completed is always the IDEAL move because, in that way, you'll get a proper follow-through of the market.

    That said, we'll strongly recommend you enter at a little bit above or below until you're entirely watched up with the market movements.


    This will come in handy IMMENSELY when the market reverses on you, as you'll be prepared to fight that worst-case scenario HEAD on.


    Besides, if you're possessed with a bad habit of entering trades before the pattern completes, then you should try to avoid it as it can cost you a lot.


    Besides, choosing an ideal and Lightning-fast execution broker such as AssetsFX is also part of the journey that will ensure you get access to the best available trading charts and other trading tools and opportunities.


    You may face temptations over time when the patterns undergo their last stage but remember that the market can reverse on you anytime while leaving you with devastating outcomes instead of fruitful ones.


    Therefore waiting a bit should be the ultimate weapon in your toolbox. It makes total sense.


    So, you get the idea, we guess!


    3. Place Your Stop Loss And Enjoy Every Bit


    Placing an order or simply opening a few trades is only considered half of the picture when it comes to online Forex trading. The real question lies, "where should you really place your stop loss?"


    Even though the Foreign exchange market is probably the most volatile in current times, fixed pips stop loss initiatives are hardly effective.


    Hold that thought; today, I'll show you how you can place stop losses at the exact point. Just like a BOSS, you see!


    When It's Above The Price Action


    In our opinion, this is the most straightforward approach you should roll with. In this likely scenario, after seeing a price action pattern, take the high position while adding a few pips (+5 should be enough here) and finally put your stop loss.


    Note: There might often come drawbacks while using this strategy which obviously will depend on the charting pattern you would be using. Besides, a BIG stop loss means smaller R: R as a reason the risk that'll come with the strategy should also be taken into consideration.


    When It's Halfway The Price Action


    When the pattern is so large that it's realistically not possible to put your stop loss above the pattern, this could be another option.


    This approach will come in handy when the pattern is usually too big. Besides, you may have already encountered them with pin bars containing long wicks.


    Though it's even riskier than the process, We've shared before as it's a mere possibility and haunches nothing else. But when you take the R: R term into consideration, it's not bad of an approach, right?


    4. Look For "Confluence" All The Time


    Confluence is literally everything. It's one of the most PROMINENT tips that you must know about, at any cost. Let's be a bit idealistic here,


    So, the best-case scenario is that you've found a juicy setup for price action trading. Bravo! Therefore, make sure that it has a confluence so that the strategy can get along with diverse signals that'll eventually support your visionary setup.


    Here are some triple top and high confluences that you should be aiming for:


    - The RSI ( when it faces divergence)

    - The Fibonacci ( the pattern often occurs at retracement levels)

    - The pivot point ( the pattern often occurs at pivot points)


    Moral: The more confluence you've on your sleeve, the BETTER the price action setup gets.


    5. Find Out The Major Inflection Points


    First of all, what are inflection points in price action trading? Simply put, the major inflection points are specifically diverse fundamental behaviors of the market price movement.


    And... yes. We're talking about the giant spikes indicating market price movement rejection. This is usually where the big market moves happen not overnight, though.


    Looking at the following chart, the points (price areas) are crucial as numerous buyers and sellers opt to find them 24/7.


    Besides, many traders will put their stop losses and entry points in these areas. Therefore, you better look for them while you can. But how exactly?


    Here's an example just for you:


    Specifically, you should be looking for:


    - Influential spikes

    - A lot of suspicious activities

    - On significant turning points


    So, start looking for the subsequent BIG market spikes already!


    6. Recognize Support And Resistance Zones ASAP


    Support and resistance ( aka S&R in short ) are the two most familiar terms used to define the lowest market price point, aka support. Likewise, resistance stands for the highest market price point.


    These price areas get tested too often by the retail market traders as they are simultaneously looking for specific activities at these points.


    Note: Support and resistance don't often occur as thin lines. Rather it represents arial zones.


    Here's an example to clear things up:


    So, if we're done observing the charting pattern stated above, a few things already make sense.


    So, first of all, the green rectangles ( stretched out ones ) symbolizes support and resistance zones.


    To be more specific, the support zones indicate lower market levels. On the other hand, the resistance zones indicate higher market levels.


    Note: The position of zones is not ABSOLUTE as it can switch places depending on the market movements.


    Trending Support And Resistance


    While we are at it, it's worth mentioning that the support and resistance levels are not only cut out to be horizontal; instead, the shape may differ.


    The chart clearly shows that a rising channel has been formed here through the lower and upper boundaries.


    Besides, the price moves along the line but eventually returns to its former state. Moreover, these aren't actual boundaries but rather more like zones.


    Dynamic Support And Resistance


    Dynamic lines can also be used while signifying support and resistance zones; for example, they can be executed using Bollinger bands or moving average trading indicators.


    Undoubtedly, it can be said that the support and resistance zones are indeed quite significant when it comes to increasing the market's activities.


    As a result, the price reacts to Arial zones while giving us opportunities to enter the market.


    7. Remember! Context Matters


    Calculating the exact position where price action will appear, you'll have to judge each individually. For a reason, the same bar appearing in the price action can be both bearish and bullish, depending on the position.


    However, not all the bars are not worth implementing if they appear at the same levels as with other significant bars. Feeling a bit dizzy?


    Why don't you look at the chart instead? Then you'll know exactly what I mean. As we can see, several pin bars are resting upwards of the chart but don't carry much weight. Why?


    The market levels are inadequate, and that's why the significance of the pin bars there is lost in their value.


    Also, if you look precisely, you'll eventually see that instead of causing a market reversal, the pin bars are causing higher price grinding.


    Due to this exact reason, contexts are the top priority when it comes to price action trading.


    Conclusion


    If we have to conclude "price action simply," it won't feel complete as there are vast aspects to discuss. Also, you should be aware of numerous misconceptions about price action.


    Some of them will sound exactly like this:

    - Price action ensures a 1000% success rate.

    - Price action is a cover-up of Forex scams.

    - It is SUPER easy to learn.

    - Price action is only compatible with Forex trading.


    And... All of these are myths that are continuously trying to defame the price action indicators. So, watch out for them, will you?


    Besides, the learning process of price action is likely a long one, but once you get a hold of it, it pays off!


    So, ready to reach new heights in the financial markets with price action? Brace yourselves then!

  • #2
    And I can add number 8 - Never risk what you can't afford to lose.

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