Simple price action forex

Once again thank you. Im using heiken ashi candles, two volume weighted moving averages and the awesome oscillator to assess trend on daily timeframe, with check on weekly for longer term. I dont trade against longer term direction.

Intraday Price Action Trading Strategies

At present this is giving about three trades right out of four, using either an opposite colour heiken ashi candle or a trade profit on paper over a few days of pips or more to terminate.. Im using a stop loss from sum of the two largest heiken ashi candles in say the last month, whether up or down, ie maximum likely price movement. I dont use the close of day, but close to the trade end of day by my broker, two hours ahead of gmt. Usually this is a time of very low volatility. If I happen to be a little into the new day it doesnt matter, what matters is what the last full candlestick is showing about continued trend or proximity to a support or resistance level.

I dont use the news or calculated levels, they tend to let you make assumptions about what the market will do as against watching what it is doing. Support and resistance and channels are fine, they are good warnings of possible outcomes.

I think its a good idea to test ones strategy out on a lower timeframe, maybe the one hour. It wont work as well, but it will give you a quick idea of whether you are on the right track. I think anything under this timeframe is too noisy, even with heiken ashi. Its worth thinking about the shape of a rising or falling market line, it usually isnt linear, but tends to roll off in a logarithmic way, so you can get a good idea of momentum by just looking at the shape of the curve.

After a while, by looking at all the pairs once a day, you can get an idea of what might be called the overall mood of the market, and which currencies are of most interest. If the market overall is being dull colourless and boring, its not a good time for a trend trader to get excited: let the market be your emotions!! Finally, record everything about every trade: how the indicators were read when accepting it, how the risk was calculated, what the price was each day, reason for decision in finishing the trade. Generally its less than half an hour a day and maybe a couple of hours over the weekend.

And if it isnt fun, dont do it!! Really your price action content was excellent. Plz provide me your pin bar course study details. Previous also am requested about this. Pleased to hear that. Great article Justin. Does a more advanced complicated system really lead to more profits in trading? Thanks, Stuart. A lot of it has to do with human tendencies. Really appreciate all this write up.. What time frame can I locate my supply and demand zones perfectly so as to be profitable in fx.

The daily is by far my favorite time frame for trading price action. You can learn more about it at the link below. There is a famous news coming tomorrow, German election which expecting high volatility in the market next week. SL and TP in vain? The choice is yours. God Bless the day I found your site and consequently found you.

I know my labour with fx over the years searching for the right way is now being rewarded. I feel happy every time I read your write ups and always look forward to hearing or reading from you. Amazing grace how sweet the right knowledge, I once was blind but now can see. Its a miracle! Thank you. I need explanation on swing highs and swing lows. What do they mean and how to identify them on a chart. Hi Justin, been with you 12 mths now, still trade demo, but it is getting better now and patience for set ups is improving.

I know as a group we all prefer mt4, which I find reasonably user friendly, but as you know we get charged on spread. That is fine if trading small size, but once we trade multiple lots the transaction costs can be significant. The only problem I find is that the platform is not so user friendly, but does offer many other markets to trade.

I really enjoy currencies, but a successful stock trader has told me to stay away from currencies, and that stocks are better to trade since we are buying into businesses, and all we need to do is find great businesses, choose the best from financial reports and then buy and hold for a while or until price action tells us to get out.

I would like your opinion since you mentioned you were a stock trader. I like currency trading, but my thinking is maybe with stocks if the financials say company is good, and chart shows a pullback, then we just wait for a buy signal exactly like we do with forex. Thankyou Justin.

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Hope this makes sense. Hi Justin, I need to watch your videos on these teachings to drive the principles thought in them into my subsconcious mind. Can you come up with the videos. If they exist already, please do share the links.

Can a pin bar form from 2days. Dear Justin, First of all I would like to thank you for valuable information for me. I would like to ask which trend trading system we can use you can advise us? Such a great article and congrats on your success trading.

I see you have used price action since and of course have been very successful. I never heard of the pin bar strtegy as well as the engulfing pattern. Seems like you learn a new strategy the more you read and learn forex. By combining the analysis of pure swing highs and lows with the discussed technical patterns, a trader can make much more sense of a chart. Support and resistance areas are local structures which show previous reaction points. The market snapshot below shows the different ways horizontal support and resistance levels can be used.

From major market boundaries, to smaller local structures which are mostly individual swing lows and highs, to huge support zones where price clusters regularly. The flip-effect is also a common pattern where price changes from using a level as support first and after the break it uses the same level as resistance.

Price is a dynamic concept and you should look for great confluence in an area, instead of trying to pinpoint exact levels using thin lines. The larger support zone in the screenshot above shows that. When everyone is trying to get into the same trade at the same price level, you will usually see a fakeout and an overreaction. However, there is much more to wave analysis. When we combine wave analysis with support and resistance, and swing high and swing low concepts, you are already looking at a robust method.

The screenshot below shows a larger range market with different wave types and scenarios. On the left we start with a strong downtrend red arrow. When price failed to put in a lower low, it also created a demand zone. The downtrend transitioned into a rally after price started to make higher highs green arrow — remember point 1.

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The rally slowly ended with a larger Head and Shoulders pattern — which is a classic wave pattern — followed by a short-term downtrend. The downtrend after the Head and Shoulders ended once price dipped in the order block or call it demand area and found new buying interest. At the same time, the transitioning pattern at the order block was a Head and Shoulders again and waves slowly turned towards making higher highs. Most traders overlook those simple principles when analyzing price action although they can usually tell you all you need to know about a price chart.

Trendlines are arguably more subjective because drawing trendlines is more of an art than a science.

When it comes to using trendlines, I suggest you focus on 2 main concepts:. In the screenshot below, those breaks of strong trendlines where you at least have 2 touch-points can be great signals and they often foreshadow a shift in trend direction. The breaks are marked with a red X. That is a risk-reward ratio. For scalping, 1. For swing trading, or higher is common, but traders can determine for themselves their desired risk-reward ratio.

Other exit methods include using price action itself. If you enter a trade because a downtrend has started, stay in the trade until the trend reverses. Price action dictates when to get out by providing evidence that the price is turning.