Go back and look
at price action over the past two weeks and see if you can determine if support and resistance levels the past two to three days can be verified.
The advantage offered to traders by this type of analysis is that it can not be seen simply by looking
at price action alone.
To make sure that you are not trapped into the end of a trend, look
at price action as well.
Go back and look
at price action over the past two weeks and see if you can determine if support and resistance levels the past two to three days can be verified.
Our stop loss on this setup would be around 100 pips and the upside potential would be over 300 points, this is how professional traders look at the market; analyze levels, look
at the price action signals, nice tight stop and nice wide profit target.
The strategy does in a way look backward
at price action for it to forecast the future from the recent history.
So looking
at the price action steadily rising off of its most recent low as we head towards earnings, in my opinion, is not a vote of confidence by any means, just a positioning play into earnings.
Hence, one popular method to determine the intraday trend is to look
at the price action of a higher time - frame.
This is just one of the many methods that I use to trade the forex market, if you would like to learn more about how I trade the market with my unique price action strategies then please take a look
at my price action forex trading course.
What am asking is how far back do you look
at the price action in other to narrow decision on a trend reversal (as all makets do reverse at some point) inorder not to trade a retracement.
For more information on how to trade inside bars, take a look
at this Price Action Course where Chris Capre shares rule based strategies and triggers to trade inside bars.
Our stop loss on this setup would be around 100 pips and the upside potential would be over 300 points, this is how professional traders look at the market; analyze levels, look
at the price action signals, nice tight stop and nice wide profit target.
I normally look
at price action on daily charts for +2 R targets (set and forget, so I only look at charts once a day at the close).
If you want to see how a news event or economic release affects a market, simply
look at its price action, because all variables are ultimately reflected via a markets price action, so when you learn to trade price action you are indirectly learning to trade everything that affects it too.
Whatever method you use, these examples will make you re-think how you look
at price action.
They allow you to keep tabs on volume while you look
at price action.