Price Action Strategy. Forex

FOREX TRADING STRATEGY. Price Action Strategy

Forex strategy revolves around the principles of the analysis of the price action. Below explains the method of Forex in detail so that you can understand it and operate it successfully.

Keep it Simple

The key principle of the price action strategy is to keep things simple. We are against complicating the trading more than necessary. Much simpler is the method, the more effective it is.

Some strategies are full of indicators absolute chaos. This is not the way for trading.

The Price Action Strategy aims to keep the graphics as clean as possible. In fact, the only thing that put candle charts is a few lines of support/resistance. The method is based on the reading and the understanding of prices by the reading of candles and the use of support and resistance lines. 

This means that the method is very simple to use and relatively stress-free. Here's a picture showing my chart of the EUR/USD

1 hour.

This is one of the benefits of using the analysis of the action of the price.

Indicators needed for this Trading strategy

So there is this Forex strategy trading indicators to use. Yes, you heard right, there are indicators.

If you want to take action on the basis of what is happening with his pair of currencies at the moment, then, only you can be based on data at current prices so it should use the price action analysis.

Currency pairs Forex in that this strategy works

The Forex Trading strategy will work on any currency pair that is free floating and be negotiated regularly. This is because the method relies on the behavior of the price. This means that you can use this trading strategy to successfully negotiate any currency pair on its platform of operations.

Having said that, I prefer to concentrate on only a few currency pairs because it is very annoying to treat of keep a record of many pairs at the same time. I think that it should be a teacher who does so. So I concentrate mostly 2 currency pairs. I mostly business the pair EUR/USD and GBP/USD pair. I usually operate. 

These currency pairs, since they are the most predictable and its movement is smoother. You don't find jumps randomly unless there has been a news very unexpected, which is quite rare. Also prefer to operate in the session of London, which is when these pairs are most active.

This strategy works best on longer periods.

Once again, since this method is based on the action of the price can be negotiated in any time frame, I like 1 hour upwards. I mainly focus on plots of 1 hr., 4 HR and daily. These are always the more profitable, because the patterns are easier to detect and lead to more consistent earnings. 

Analysis of the price action types 

First of all, I use two forms of analysis of the action of the price:

Support/resistance lines.

Analysis of candles.

How to enter a transaction through my strategy Forex Trading?

Due to the recent economic uncertainty of the countries that have been in danger of losing its ratings of credit, etc., the money is not negotiating as you normally would, so now I only do trading of reversions. Miro reversion settings forts that are formed on the side top/bottom of my areas of support/resistance. Once formed a pattern that indicates that a change has been established and I find price activation, entered in the trade. I do several trades each week and so far I've had a rate of 85% gain.

The objectives and the stops of the strategy

Goals: My goal is approximately 30-50 pips per transaction.

Stop the: put my stop between 15-30 pips away from the entrance.

These objectives differ in different market conditions, so please check the minimum/maximum in the he joined the operation to have more up-to-date information.

How to adjust the strategy around the economic news

I use the Forex Factory calendar to keep track of economic data that will come out and that affect the pairs that I operate. If there is any news of high impact (red/orange), that it will be for the dollar American, the euro or the British pound, then remain out of the market in that currency. I will not go in a 30 minutes before the news or after the news operation.

As you can see the Forex strategy is simple and allows you to make pips in any market condition, with the majority of Forex currency pairs.

Areas of support and resistance

One of the most common mistakes and it bothers most new operators is that they completely ignore areas of support and resistance. Sufficient importance is not to support and resistance areas in web sites and books of Forex. Most of the people prefer to focus on support and resistance lazy. These are the lines that are they calculated using formulas such as points pivot or Fibonacci. While the areas of support and resistance lazy have some use, place their own areas of support and resistance, is a much better and more accurate.

Reference: https://g8fx.files.wordpress.com/2012/05/nick-2012-es.pdf