In this tutorial we are going to give action examples of exactly what price action is and explain how you can make use of it in your trading. In the chart below we are looking at some of the most basic terminology of trading with price action:. If you want to know more about candlestick charts checkout this candlestick chart tutorial. The up bars marked above are in an uptrend. This can happen in aggressive trends like we see above, because as you can see the high and low of that black bar are still above the high and low of the previous bar. Notice in the example above how the close is lower than the open in the down bars highlighted, this is typical of most down bars although it is not necessary as we saw in the up bar discussion. Some traders do not consider an inside bar that has either an equal high or an equal low as an inside bar, others do. Inside bars usually represent market indecision. As on any bar, the closer the open and close are to each other shows just how undecided the market is as neither the buyers or sellers are in control. Since the close was substantially higher than the open in the outside bar example above, it shows buyers were in control. Another definition used for this bar — especially if candlestick charts are used — is that the open and close have to engulf the previous bars open and close and not just the high and low of the bar. With this definition, the wide range bar or engulfing bar does not need to have a higher high or lower low to qualify. The first definition most probably came about with bar charts where it is harder to notice the open and close. In the chart below we can see examples of one of my favorite price action trading strategies, price pin bar reversal setup. So, basically, when we look for confluent areas in the market we are looking for areas where two or more levels or analysis tools are intersecting. In the chart below, we are looking at an example of how to trade price action with confluence. For example, in the chart below the pin bar is showing trading of an obvious horizontal resistance level in the market as well as the dynamic resistance between the 8 and 21 day EMAs red and blue lines. Yet another factor of confluence in the trading below is the downtrend itself. Thus, in the chart below we have 3 factors of confluence validating and strengthening the case for a short entry from the pin bar setup:. The following chart has the swing highs and lows marked in both an uptrend and a downtrend. Price on a given time frame is in an uptrend if it is making a higher highs HH and higher lows HL and in a downtrend if it is making lower highs LH and lower lows LL. If price is doing anything else, it is in a consolidation pattern — range, triangle, pennant, rectangle etc. The trend is considered in place until price is no longer making higher strategy and higher lows in an uptrend or lower highs and lower lows in a downtrend. After a trend is broken, there is usually a period of consolidation that is easier to see on a lower time frame. With practice, you will be able to visualize this going on without looking at the lower time frame. Tight consolidation can be traded but it needs to be done on lower time frame charts and is best left until you are very skilled at trading the daily chart first. You now should have good understanding of the basics of price action trading. Just like you need a strong foundation to build a house, you need a strong foundation to become a successful trader, and learning to trade on the daily charts before going lower in time frame will help you build that foundation. Hi nial,by using daily TF will expose small trader like me into a bigger risk. Can you please recommend any lower TF which the signals still good for entry as the risk will be smaller. Hi Valued Traders I am in Forex from nearly 10 years and I studied it in very depth. It will be like saying 1, 2,3 etc. Giving out so much valuable knowledge and information for free has only convincedz me that he is one of the hornest educators out there. Very informative article,iam a beginner but with the info you are providing iam already feeling positive. Thanks Nial,your article is really good ,simple but easy to understand even for a beginner like me, this price action strategy is new for me, so i will keep looking to this site for learning while i am try to applying price action strategy to my trading. Thanks for the wonderful articles. I stumbled price them, and inspite of having experience of a few years trading full time, have learnt something anew. Incredible explanation Nial Thank you very much. It has been incredibly helpful your tips and strategy on being a successful trader need to start with oneself, and has changed my trading completely. I have a question regarding regular trading on the opening market. What is the perfect time frame to use? As you pointed out different time-frames give you different trends and trends within trends. Therefore the smaller the Time frame the more volatility price Trends you will see. What is a good tool to find the appropriate time frame for the investment you are in? May I just say what a relief to find someone that actually knows what they are talking about online. You definitely know how to bring action problem to light and make it important. A lot more people should check this out and understand this side of your story. I wanted to ask if there is more information about multiple time frame trend analysis in your course? If yes, could you tell us more about it? It has been extremely difficult to get honest, clear explanations of this terminology without shameless plugs to buy something, and still not even receive accurate information. This article is very informative and has given me a whole new level of understanding of price action analysis and it will help me a lot with strategy my strategy. Thanks for your help. Very well done Nial. I have your trading course. But i all ways find my self coming back to all this free stuff. Hi Nial, so far I came accross no other website explaining pin bar, inside bar and related strategies in great detail. Hi, I am a full time FX trader of 6 yrs now. I have a pure price read strategy that I developed myself and use with good success but I always keep an eye to what good educators have to say to increase my knowledge. To that end, I literally stumbled on your website Niall when doing a google search about something entirely different………. It took me years to properly learn how to be a form reader and confidently read raw price action as you call it…And I had to teach myself because that is truly the only way to develop the skillset. Your email address will not price published. Notify me of follow-up comments by email. Notify me of new posts by email. Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Learn To Trade The Market Pty Ltd, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage trading work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Price Action Forex Trading Strategy By Nial Fuller in Forex Trading Strategies 24 Comments. In the chart below we are looking at some of the most basic terminology of trading with price action: What is a price action trading signal? Trading price action with confluence Confluence: Thus, in the chart below we have 3 factors of confluence validating and strengthening the case for a short entry from the pin bar setup: In closing… You now should have good understanding of the basics of price action trading. Checkout my Free Introduction to Forex Trading course: Now I want to hear from you! July 26, at July 27, at June 21, at 4: September 19, at 9: September 19, at 6: April 19, at 1: April 17, at 4: March 19, at 2: March 11, at 2: February 3, at 4: January 28, at 2: January 5, at 5: Trading 29, at November 24, at 8: July 28, at 7: May 27, at 4: October 16, at 1: August 2, at strategy July 21, at April 11, at 7: February action, at January 27, at 1: November 30, at 4: November 24, at 7: Leave a Comment Cancel reply Your email address will not be published. Categories Forex Trading Commentary Forex Trading Videos Forex Trading Strategies Forex Trading Articles Trading Lessons Blog Forex Trading Blog Trading Tools. 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HUGE 950% RETURN! How I Trade With Simple Price Action Trading & Support And Resistance Analysis
HUGE 950% RETURN! How I Trade With Simple Price Action Trading & Support And Resistance Analysis
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