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Thread: Price Action Trading - Understanding the Basics Part 1

  1. #1
    Moderator cool user Resolve's Avatar
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    Lightbulb Price Action Trading - Understanding the Basics Part 1

    Price Action Trading - Understanding the Basics Part 1

    Dear traders,

    In this topic I would like to explain you about the basics of price action trading And how to make use of price action in your Forex trading.

    Price action trading is one of the most simple Trading strategy that you can learn and also it is very easy to understand. When you follow price action trading then and you start learning from the market because you know no what is happening in any currency pair that you may choose to trade with.

    For understanding price action you will need to follow the charts of the currency pair in which you want to do trading. You can choose any type of chart Like the Bar chart or the Line chart And then you have to look for patterns in those Charts.

    Price action is actually based on the psychology of the the majority of Forex traders and then you get to know the Trends which are still prevailing in the market.

    You can use bar charts and then you need to to understand the candlestick patterns in them. I make use of the line charts and then I look for trend patterns in them. This tutorial is directly based on the use of line charts and then how to find patterns in them.
    Last edited by Resolve; 04-01-2020 at 12:11 PM.

  2. #2
    Moderator cool user Resolve's Avatar
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    Price Action Trading - Using Line Charts

    5 Minute Line Chart EURUSD



    You can see the 5 minute line chart of the currency EURUSD above. If you would look closely at the chat you can see that it at the support level buying activity started and the price of the currency EURUSD continues to rise throughout the trading period.

    Because the buying activity happens the price of the currency pair Euro USD if rising and it enters into the bullish mode.

    So any traders who are entering the market with why orders of Euro USD will get profits at the end of the trading Day.

    In this type of trading we need to stay in the market for one time till the price has reached a level where no more further buying activity is seen.

    On 18th May main at 12:30 terminal time the price of the currency pair EURUSD started to rise so all the traders who entered after this time in the market with a BUY order will be able to make profits.

    We need to wait till the buying orders balance the cell order which is also known as Market Consolidation.

    After the Euro USD price crossed 1.0900 levels you can see that the market consolidation has started and this is a safe time to exit your buy order.
    Last edited by Resolve; 05-19-2020 at 12:48 AM.

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