Forex Trading Analysis - What Price Action Teaches You

  

If there is one aspect or trading method that is completely overlooked in the forex market it would have to be price action. This forex trading strategy should be a part of any trader's M.O.

To put it simply, its like seeing the market's energy.  By looking at a simple bar chart, you can literally see how what kind of market sentiment that traders have.

price actionYou can figure out the current trend. This is something that you hear about all the time.  You always hear traders say "know which way the trend is".  Most don't have a clue.

It's obvious looking at how many people fail to make money in the forex market, how many traders are constantly trading against the trend.

I'm not saying you won't have a winning trade if you ever go against the trend but it's a lot easier when you are going with it.

Going against the trend is like trying to catch a falling knife. Sure, you can catch it without cutting yourself, but its risky.

So, how can you tell where the trend is headed?

Well, I'll give you a clue.  You're not going to find it with a moving average indicator.

All you'll ever need is simple price action.  in my currency trading education course Trading In The Buff, I go over how you can use longer time frames to dictate the current trend of shorter time frames, that way you know you are trading in the right direction.

But for those that want a simple way to tell which way the market is trending, just pull up some charts and read from left to right.

I'm serious.  Pull up a chart and start from the left hand side and see which way the price has been headed.  If its way below from where you started, then we are obviously on a downtrend and you should be looking for good selling opportunities. 

It it's a lot higher than when you started, then we are on an uptrend, and you should be looking for buying opportunities.

That's it. Simple as that. 

People feel the need to complicate trading, but it really doesn't have to so complex.

Think less is more, and I guarantee that you'll be a happier trader.

When I say less, I mean less indicators, less bells and whistles, less gimmicks, less everything.

When you learn about price action, you get to see the market in its purest form.  After that, nothing else could match it.

 


Check out Trading In The Buff to Learn How To Trade Forex Successfully Just Using Price Action.


 

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