Price Action Trading Strategies
What are some specific forex price action strategies that you can begin using immediately to learn how to trade in a simple and profitable manner? Let’s discuss a few time-tested and easy to implement forex price action trading strategies and check out some videos of each to give you a better idea of just what they entail.
• Price Action Reversal Patterns
Reversal patterns can be one of the most lucrative price action patterns you encounter. This is because they often form at major market swing / turning points, support or resistance levels, or just prior to a trend resuming. Price action reversal bars like the pin bar setup are used widely by professional traders to time their entries into the market very accurately. The thing you will need to watch out for is low-quality price action reversal patterns, as these do sometimes occur in the course of normal daily price action. This is why it is critical you practice price action trading on a demo account before going live; it takes a good degree of discretion that is only achieved through practice and chart time before you can become a pro forex price action trader.
Pin Bar Forex Trading Strategy with Trend:
• Trading Forex Price Action with Confluence
Confluence means that two or more market events are meeting at the same point and “confirming” one another other. So we can use a confluence of factors to confirm the price action setup and direction we are looking to trend. Examples of trading price action with a confluence of factors would be a price action setup coming together in any combination with any or all of the following market factors; trend lines, horizontal support or resistance, moving averages, Fibonacci retracements, and any other similar “core” market factor.
Trading Forex with Price Action and Confluence:
• Contrarian Reversal Patterns
One key advantage to trading forex with price action setups is that it gives us the ability to take the opposite side of the market that most amateurs are trading. Amateur and beginning forex traders tend to try and pick tops and bottoms, this inevitably causes them to trade against the dominant trend or to get in a trend right before it is about to reverse directions. By learning to trade contrarian reversal price action patterns or “false breaks”, traders can effectively use this knowledge of how amateurs think and trade, to trade like the pros do. False break price action patterns occur when amateur traders try to pick a top or bottom within a trending market, price will begin to go in their desired direction for a short distance, than the big players will come in and squeeze out all the amateur / emotional traders as they push the market back in the direction of the trend. We often also see false-break patterns just before major market turning points as all the amateur traders feel “safe” with the trend significantly extended. Watch the video below to help clarify these forex price action false-break patterns:
Learn To Trade Forex Fakey Trading Setup:
To see some more excellent price action trading videos click here: Price Action Videos.
