You should really dedicate yourself to learning all the nuances of one
price action setup at a time on the daily charts, once you do this and are making money consistently on a demo account you can then move on to the next price action setup.
An excellent New Year's resolution to get your trading on the right track would be to become a «specialist» of one
price action setup at a time.
One proven method that will help you stick to price action trading is to decide to focus on one
price action setup at a time and really master it.
You should really dedicate yourself to learning all the nuances of one
price action setup at a time on the daily charts, once you do this and are making money consistently on a demo account you can then move on to the next price action setup.
I have long preached the value of mastering just one
price action setup at a time.
So you need to remove hesitation and indecision from your mind, and the way you do that is by mastering one trade setup at a time, and in the case of my methods, that means one
price action setup at a time.
I touched on this earlier, but simplification of your trading is another huge reason you need to master one
price action setup at a time.
Listen to the signal and the market conditions; if there's
a price action setup at a clean breakout level or an obvious trend with strong momentum, trailing your stop into a 1 to 4 winner may have its reward.
Ideally you want to wait for a price action setup to form at a key level after the market has pulled back a bit, a good example of this would be if your initial position moved in your favor and then pulled back to around 50 % of the way back to your entry and then formed a pin bar at a key level, or some other
price action setup at a key level; this would be a logical spot to add to a position by averaging in.
Not exact matches
There are different factors of confluence that we can watch for, but in the chart below I am showing you
price action setups that formed
at key support and resistance levels in the market; support and resistance are each a factor of confluence.
However, since the
price action setup tail high or low is very close to a key level in the market, logic would dictate that we make our stop loss a little bit larger and place it just beyond that key level, rather than
at the high or low of the
setup's tail.
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.
We are looking
at the AUDUSD daily candle stick chart in this video and are going to walk through an inside bar / pin bar forex
price action signal trade
setup.
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.
Indeed, a big portion of my trading theory revolves around waiting patiently for an obvious
price action setup to form
at a key chart level as the market retraces back to it.
If you enter an obvious
price action setup like that and you've placed your stop loss
at a logical spot in - line with the existing market structure, there's no reason to panic if the market moves against you and almost stops you out.
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.
This process of mastering one piece
at a time should be repeated until you have mastered all aspects of your Forex trading strategy, in the case of my
price action trading strategies it means mastering one of the
setups that I teach
at a time, on the daily chart, before learning a new one.
I talk a lot about trading Forex like a sniper and not a machine gunner; well, waiting for
price action setups to form
at confluent points in the market is HOW you trade like a sniper.
This is where patience really needs to come in and wait for the
setups that offer decent confluence and solid
price action at the same time.
As an end - of - day Forex trader you can live your life exactly as you are now, but instead of spending 30 minutes watching television
at night, you can simply analyze the markets according to your trading plan and look for
price action trading
setups.
You are going over what happened while you were sleeping, looking
at how the
price action of your favorite markets reacted near key chart levels or if any
price action setups formed in - line with the trend.
We often see high - probability
price action setups forming
at the boundary of a trading range.
However, since the
price action setup tail high or low is very close to a key level in the market, logic would dictate that we make our stop loss a little bit larger and place it just beyond that key level, rather than
at the high or low of the
setup's tail.
We are looking
at the AUDUSD daily candle stick chart in this video and are going to walk through an inside bar / pin bar forex
price action signal trade
setup.
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 too was a struggling trader early on in my career, but once I discovered the power and simplicity of trading off simple
price action based
setups, I never looked
at any other indicator or trading software again.
3) Look for
price action signals that have formed
at confluent levels in the market, make sure to trade only very obvious and confluent
setups: — You have to know exactly what
price action strategies you are looking for before you build your trading plan.
Below is a
Price Action Forex Trading Strategies Video Tutorial — Looking
at the GBPJPY 4 Hour chart, I talk about using the 3 step filter process for finding Forex trades with a strong confluent «hot point» which produces high probability forex trades, and good risk reward trade
setups.
In this video we are looking
at a GBPJPY daily candlestick chart and a
price action reversal
setup off the 147.00 level that alerted us to the trading opportunity in this market.
I discuss
price action trade
setups, chart analysis and commentary on
at least 5 different markets including major currency pairs, commodities, and stock indices.
I simply use my ability to read and interpret the overall market structure to find high - probability
price action setups, and I watch for these obvious
price action setups forming
at key chart levels.
Proper
price action at a proper static area combined with a dynamic area can be a nice lower risk higher probability
setup.
If you actually do this with discipline, by only taking obvious
price action setups and rigidly implementing a risk reward of
at last 1 to 2, you will become profitable over a series of trades.
If you're considering a
price action setup that didn't form in a trending market, did it form
at a key level of support or resistance?
A
price action trade signal
at a major 50 % retrace level can also be a highly confluent
setup.
Set aside a regular time each day that you spend looking
at the daily charts of a few major currency pairs, any
price action setup that is
at a confluent level and well - formed will likely stick out like a sore thumb.
I believe
price action trade
setups have a much higher probability of working out in our favor when we look for them
at these confluent key levels in the market.
There really is no need to try and trade from 25 different
price patterns, the Forex market moves in a relatively predictable fashion most of the time, so all we need is a handful of effective
price action entry
setups to give us a good chance
at finding and entering high - probability trades.
So, it is not just the
price action setup or signal we are looking for, it is the properly formed
price action signal occurring in the proper market conditions or
at the proper level that we are looking for.
If you enter an obvious
price action setup like that and you've placed your stop loss
at a logical spot in - line with the existing market structure, there's no reason to panic if the market moves against you and almost stops you out.
There are different factors of confluence that we can watch for, but in the chart below I am showing you
price action setups that formed
at key support and resistance levels in the market; support and resistance are each a factor of confluence.
Indeed, a big portion of my trading theory revolves around waiting patiently for an obvious
price action setup to form
at a key chart level as the market retraces back to it.
At Trading
Setups Review, we have compiled our best resources on
price action trading that includes guides, strategies, and tips.
Also, as a
price action trader focusing on the daily chart, we need to see the
price action setup close out on the daily chart before we can correctly identify it as a
price action signal, and it's
at the daily chart close that many significant
price action setups form.
The first thing that all traders should do upon spotting a
price action setup, or any trade
setup, is calculate the risk they will have to take on in order to give the
setup a realistic chance
at working out.
For example, if you enter a long on the EURUSD and the GBPUSD, you are basically doubling your risk, and there is really no point in trading both
at the same time, you might as well trade one or the other, if there is a similar
price action setup on both, pick the pair that the
setup looks more defined on.
We like to see these types of
price action setups here
at LTTTM, we hope that you enjoy our simple yet highly effective take on
price action trading, for more education,
setups, and commentary check out the member's forum
Traders often get caught up using indicators to analyze
price movement, this is like going to a mechanic if you are feeling sick, it just doesn't make sense to look
at a lagging
price indicator to analyze
price movement when there are regularly repeating
price action setups that can give you a much better expectation of what
price is likely to do next.
And because it uses purely
price action to pick trade
setups (our unique algorithm doesn't use ANY lagging indicator
at all for pattern detection), it reacts to the market very fast.