Beginners Introduction To Price Action Trading

Beginners Introduction To Price Action Trading

Price Action Trading Explained 1- The Definition Of Price Action 2- Trading with “Messy” Vs “Clean” Forex Charts 3- How to identify trending and consolidating markets 4- How to trade Forex with Price Action Trading Strategies 5- How to use chart confluence and Price Action Signals What is Price Action ? Basic Definition: Price Action Trading (P.A.T.) is the discipline of making all of your trading decisions from a stripped down or “naked” price chart. This means no lagging indicators outside of maybe a couple moving averages to help identify dynamic support and resistance areas and trend. All financial markets generate data about the movement of the price of a market over varying periods of time; this data is displayed on price charts. Price charts reflect the beliefs and actions of all participants (human or computer) trading a market during a specified period of time and these beliefs are portrayed on a market’s price chart in the form of “price action” (P.A.). Whilst economic data and other global news events are the catalysts for price movement in a market, we don’t need to analyze them to trade the market successfully. The reason is pretty simple; all economic data and world news that causes price movement within a market is ultimately reflected via P.A. on a market’s price chart. Since a market’s P.A. reflects all variables affecting that market for any given period of time, using lagging price indictors like stochastics, MACD, RSI, and others is just a flat waste of time. Price movement provides all the signals you will ever need to develop a profitable and high-probability trading system. These signals...
Common Forex trading mistakes and traps

Common Forex trading mistakes and traps

Common Forex trading mistakes and traps There are common mistakes and ‘traps’ that give nearly all traders trouble at some point in their trading careers. So, let’s cover the most common mistakes that traders make which keep them from making money in the markets: • Analysis-paralysis There is a virtually unlimited amount of Forex news variables that can distract a trader, as well as tons and tons of trading systems and trading software. You’ll need to sift through all of these variables and forge a trading strategy that is simple yet effective, warning; this can be a very a difficult task for beginner traders. The reason why, is that most traders seem to think that ‘more is better’, when in reality ‘more’ is actually worse, as it relates to Forex trading. There really is no need to sit in front of your computer for hours on end analyzing Forex news reports or numerous indicators. My trading philosophy is that all variables that affect a market’s price movement are reflected via the price action on a price chart. So, spending your time and money on trading software, systems, or analyzing news variables is simply a waste. Furthermore, many traders get analysis-paralysis, this occurs when a trader tries to analyze so many market variables that they exhaust themselves to the point of making silly emotional trading mistakes. • Over-trading Most traders do not make money in the markets over the long-run for one simple reason: they trade way too much. One curious fact of trading is that most traders do very well on demo accounts, but then when they start trading...
What is Professional Forex Trading?

What is Professional Forex Trading?

• What is a professional Forex trader? A professional Forex trader is someone who uses price movement in the Foreign exchange currency market to make profit. The aim of any Forex trader is to win as many trades as possible and also to maximize those winning trades. A professional Forex chart technician uses price charts to analyze and trade the market. By trading with an EDGE in the market, professional traders can put the odds in their favor to successfully trade price movement from point A to point B. Caution: Forex trading is not a ‘get-rich-quick’ scheme and it is more difficult to make money in Forex than what most popular Forex system-selling websites would have you believe. To trade profitably we must not only have winning trades, but we must also cut our losing trades short so that our winners out-pace our losers. You see, losing is an enviable part of trading the Forex markets, and you must learn to lose properly by taking small losses relative to your winners. This means you must A L W A Y S trade with a stop loss on E V E R Y trade you take and make sure the dollar amount you have at risk is an amount you are 100% comfortable with losing. Professional Forex price-chart traders have a winning edge which is developed via Technical Analysis (more on this in Part 4). There are also Fundamental Analysis traders and traders who use a combination of both analysis techniques; we will discuss all of these later. A professional Forex trader understands that reading a price chart is both...

Explanation of Isakas EA

Explanation of Isakas EA Based at Cin Loi’s question about how does Isakas EA work, I will try to explain in this post because I think it is a bit longer and should be read by everyone who wants to test this EA. Isakas EA is made based on Isakas II strategy at Forex-tsd.com. Here is the link. This strategy basically uses 4 indicators (BBStop, NonLagDot, FisherKuskus, and FlatTrend) but then modified just using 3 of them without FlatTrend. Main Rules for Isakas II Strategy (taken from the post at Forex-tsd.com) Entry Buy – bbands blue, fisher blue, nonlagdot blue. Entry Sell – bbands red, fisher red, nonlagdot red. My EA doesn’t open new position just like the picture above because some people said it is not profitable (read the full thread and you will find about it, pheew… it is a long thread). There is a rule about the valid signal because mostly the signals are not happened in the same candle. So, there is an added parameter for counting the signal at the EA’s parameter. This should be handled by “SignalBarCounter” in the EA. For an example SignalBarCounter=3, when BBStop turn color into Blue (buy signal) but NonLagDot is still red then EA should wait for the next 3 candles until NonLagDot changes into blue. But when this condition isn’t met then EA will ignore this signal and wait until BBStop turns into different...
A Cure For A Trader’s Analysis

A Cure For A Trader’s Analysis

A Cure For A Trader’s Analysis-Paralysis Stop Thinking and Start Trading.. Does this sound familiar: You see what you believe at first is a perfectly good trade setup, however, as you continue to analyse and study it you begin to feel less and less sure about the trade, yet you aren’t totally sure why? This is a common problem for traders; the ‘deer in the headlights’ scenario that occurs when you have too much ‘congestion’ in your thinking. Traders often over-analyse themselves right out of a good trade setup, and it can be a very big problem that can have severe negative consequences on your trading performance. Over-thinking can also cause traders to screw up perfectly good trades that they’ve already entered, this is another big problem you need to deal with. The goal of this article is to identify the main reasons that over-thinking negatively impacts your trading and how to solve them… Problem – Too many external influences causing confusion and over-analysis News, trading websites, CNBC, other people, etc.; all of these things have one thing in common, which is that they cause you to over-analyse the market and become confused. External influences are probably the biggest reason traders think themselves right out of good trades, mess around with their trades when they’re live and over-trade. When you have too many external influences, it clouds your mind and thought process and causes you to second-guess your trading strategy. Cure – Make a decision to ignore external influences The key to ignoring external influences such as the ones discussed above, is to simply gain understanding and knowledge that...