I'm just going to touch on a forex trading education that nobody else seems to talk about: the concept of
price action. It has been around since the first trade was taken
in the stock market.
So it's really surprising to see how many people
aren't fully aware of its power.
Unfortunately we (traders) have gotten a bit too lazy
throughout the years. We'd much prefer to let a machine, or an indicator tell us what's
what, instead of figuring it out for ourselves.
Nowadays, you can find your own special indicators,
mechanical trading systems, trading robots, etc... anywhere online. Just pick any forex
But how often do you hear about price action? My
guess is not too much.
It is a bit of a broad term, which is why I think
most traders dismiss it, and go for the easy shortcuts. But they don't see all the information
they are missing.
patterns: Have you ever just sat down and looked at a basic price chart with no
indicators, and just focused on what the price was doing. If you did, you might have noticed
that there a patterns in which the price movement constantly duplicates and can provide an insight
as to where the future price is headed.
The Trend: Ah...yes
the trend. It's a word you hear a lot about but most traders wouldn't be able to spot it, if
you gave them a road map. I'll give you a clue. It has nothing to do with moving
averages. As pretty as they might look on your charts, they won't tell you where the trend is
Support and Resistance
Areas: I'm sure many of you who use a Metatrader MT4 charting platform,
probably have the custom pivot indicator that gives you the 3 support areas and the 3
resistance areas. Don't feel bad. I used those (as well as forex expert adivsors) too when i was first starting
out. But the truth is the REAL support and resistance areas can't be calculated. It's
just not that cut and dry. To find out the real, there is only one place to look, and
that's in the price action. There is no indicator that can just spot it for you.