Another excellent way to trade horizontal lines in the market is to simply watch
for price action setups forming near the boundaries of a range - bound market.
Simple trading strategies
like price action setups actually become MORE accurate as you move up in time frame, generally speaking.
Typically, you can watch for
price action setups at one boundary of the trading range and then take profit near the other boundary of the range.
If you would like to learn more about how I trade the market
with price action setups and risk reward scenarios, please check out my price action forex trading course.
The forex market has widely accessible demo accounts that you can practice
price action setups on before going live.
Fortunately, with knowledge of how to trade
simple price action setups from key levels, we can effectively trade range - bound markets as well.
Note: These same principles apply in a down trending market but we would be looking for
price action setups from resistance rather than support.
My unique way of trading
using price action setups is a result of many hours of screen time spent analyzing price movement and price action patterns.
By building our trading method around a handful of time - tested and
repetitive price action setups, we give ourselves the best shot at riding the momentum of the market to consistent profits.
Once you learn a few
solid price action setups you will know exactly what you are looking for in the market before you enter a trade.
All of these trades above are examples of
valid price action setups that I would have traded, and I did actually trade and profit off of some of these setups.
I'm working on a book right now that includes
more price action setups with detailed examples including methods to exit.
Thus, at this time
many price action setups form and we also can see a clear picture of who won the battle between bulls and bears for that day.
Another great thing
about price action setups is that they usually become stronger and more valid the higher the time frame you trade.
Fortunately, trading with simple
price action setups allows us to trade in any market condition, so we can still find high - probability trade setups even in range - bound market conditions.
My own personal approach to trading and teaching price action trading is that you can trade effectively from a few time -
tested price action setups.
Even though this market is ranging and not really in a trending state, we can still use significant levels combined with well -
defined price action setups to trade with.
I have been successfully using simple yet
effective price action setups to trade the markets now for years, and I teach other traders exactly how I trade in my forex trading course.
Now compare the above chart to the exact same chart below with nothing but
pure price action setups and support and resistance levels marked.
Sometimes, you will come
across price action setups that you just aren't 100 % confident in but that still meet your trading plan criteria.
Since I trade the daily charts most of the time, I run my stops according to daily
chart price action setups and to the dynamics of the daily chart price action.
A high
quality price action setup allows you to set and forget your trading while still giving you a higher than 50 % chance of winning any given setup.
This article is going to explain exactly why trading with indicators is detrimental to your success as a trader, and why you should learn to trade with simple
price action setups instead.
The analysis of price movement
via price action setups is really the only method you need to build your trading plan around.
When you know how to use
price action setups effectively you can trade strictly off daily charts and spend about 30 minutes a day analyzing the forex market for trade setups.
Price action setups occur frequently in the forex market and are easy to spot once you are trained to know exactly what to look for.
When you have a strong entry method,
like price action setups, combined with an understanding of risk to reward scenarios you begin to think in probabilities.
Event areas are horizontal lines that can be very high - probability areas to watch
for price action setups forming near.
• Once you learn to spot simple high -
probability price action setups, you can begin putting the odds in your favor to catch powerful moves like this one in silver.
The way that you remove the confusion and complication from your trading is by taking the time to master one
price action setup at a time.
By building our trading method around a handful of time - tested and
repetitive price action setups, we give ourselves the best shot at riding the momentum of the market to consistent profits.
I am still doing a demo account but
using price action setups, then off to work I go to return 10 hours later to view results.
My own personal approach to trading and teaching price action trading is that you can trade effectively from a few time -
tested price action setups.