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Mary S

Advantages of using a price action trading strategy in Forex?

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Hello Mary,

The price action technique involves predicting the price movements in the market using the recent and past prices, and various technical tools such as charts.

 Price action will enable you to look for an opportunity to trade when the market is volatile. You will check the position, shape, volume, growth, and size of the bars in a candlestick chart, where you start with one bar and later combine with the charts that form while using the technical analysis.

One main advantage of price action trading technique is that it is easy to understand and use. When you choose not to use any trading and follow the current and past market prices, you will be able to make your trading decision easily.

The technical analysis tool will be there to make your prediction more accurate; you necessarily do not need to use them. You will use candlestick charts that will help you analyze the market.

The signals in a price action market are easy to understand. You need not be an expert in this market to succeed. You can easily identify market trends and make an informed market decision.

Also, the time frames you use in price action trading are of great importance. The price action strategy gives you a variety of time frames that you can use to observe the market signals and, from there, make your decision.

 While using the daily time frame, for example, you have a considerable amount of data in the bar; hence the signals you get are much more reliable compared to a few minutes' bars. The signs being very reliable will up your success in this trading technique.

Price action strategy is a flexible trading technique whereby you can consistently make profits. The Forex markets change each time, and employing the price action trading strategy is usually very reliable to speculate the price movements no matter how volatile the market is.

The price action technique is a great way to boost your earnings in the Forex market.

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Hi Mary,
Price action strategy involves speculation with everything reflected through raw price action on price charts. You have several options to take advantage of price actions. These include differing technical analysis forms, like support channels and indicators. Use these to identify price action changes. Together, these let you pick trade opportunities during enhanced volatility periods.
Price action trading involves resting your trade choices on price chart movement of prices. You won’t require indicators to pinpoint a go-ahead such as support, resistance areas, and treads for you to trade.
This trade-making decision discipline rests on the fact that markets create data on changes in market prices during a certain period. This data appears on price charts. Ultimately, price charts display beliefs and actions of traders eventually represented on market price charts as price action.
Price action helps you avoid the mistake of trading emotionally while giving you flexibility in your decisions.
 

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