As trend of trading is moving upward people are mainly focusing on different trading strategies to earn a handsome profit.
Price Action Trading Strategy
In this world of competition people are trying to be expert in different trading strategies to beat other traders in this industry. In these profitable strategies price action trading strategy is also very important.
In this article we will try to explain these main topics related to price action trading strategy.
- What is price action trading strategy ?
- Why it is important ?
- Main reasons of failure as a beginner
- Main points to be successful in this strategy
- Top 5 price action trading strategies
Let’s try to uncover all these main topics one by one.
Price Action Trading Strategy:
What is meant by this?
Price strategy is actually to learn the historical market trends and draw a perfect and reliable conclusion of future trend of prices.
People come to trading market but most of them are usually not pretty good in this field so they try to use indicators to make themselves better than other competitors which are related to their field.
These people are unaware to the best strategy which is known as “ price action trading strategy “. Now by some professionals of this industry, it is being heard that price itself a indicator. It needs no one to describe because it by own self describes it’s trend on basics of its historical trend.
In other words we can say that it is mainly based on three major assumptions. These are mentioned below :
Price discounts everything
No need for any other indicator
Collective behavior of a trader is repeated.
All these mentioned points are majorly derived from only single phrase :
“ Price Action Is Enough “
It tells us that the traders, instead of using indicators to be successful in market can use this simple strategy to become professional. This works in such a way that it tends us to understand the recent past behavior of prices whether it was upward increasing or downward decreasing. This powerful technique helps us to enter a market by providing a good analytics.
This strategy is consisting more important term “ price “. This term describes itself and its own behavior in market place. Moreover it is necessary to explain that where other indicators like moving averages and many other price is itself an indicator.
What is price action trading strategy?
As early mentioned that price action is the name of behavior of traders in market place. It is study of actions of buyer and sellers of the market. For example : It depends upon the demand of that product. Whenever it shows shortage then there is a chance to rise upward. Also whenever it is in excess then it shows downward behavior in prices.
At the end we can see the action of traders after having knowledge of price trend. These traders use this historical analytics and studies the demand of market. After going through all these he starts trading to proceed.
Reasons of failure as a beginner:
1.Lack of patience:
When we start our journey as a trader in forex trading or other trading market place we become frustrated of results. We don’t care when we should enter and when we should leave. We take this action in hurry.
Size of candle :
We try to use big or small candles without having knowledge of it. It matters most in our trading career. We should try to use relative size of candle. It may be great or small depending upon market stock.
Selection of stock :
In start of our career as trader we think that all the stocks are for us. But most of these are not good for us. We think that we have done a great effort for it. But the thing which is more important is that we should only try those stocks which are feasible to us. We should not try all of these for which we have tried to learn.
Correlation with market trends :
After when we choose a feasible stock we often make mistake that we use and trade in them with out having proper knowledge of its relation with market trends. This thing also matters in a successful career as a trader. We should analyze the relation of particular stock with market trends.
Reliable list of pattern:
In start we use patterns presented by other who recommend us to adopt from such of their pattern. Instead of these you should try to discover these around your opinion. It is the best way to learn the actual actions taking place in market.
10 main points to be successful in price action trading strategy:
- identification of trend
- set up best chart
- confirm the trend
- Target and stop loss
- investor sentiment
- analysis should be superior
- keep in mind that investors follow different patterns
- operator and news driven stocks
- trade according to the trend
- proper combination with analysis
Top 5 price action trading strategies :
We have explained all about price action trading strategy now it is time to explain best even price action trading strategies. Let me explain these. The top 5 best strategies of all time are mentioned below:
#1 – Outside Bar strategy
#2 – Spring
#3 – Inside Bars after a Breakout
#4 – Long Wick Candles
#5 – Little to No Price Retracement
Now come with me to explain these strategies one by one.
Outside bar price strategy:
For people, unaware by this type can understand it by a simple example of a bullish out side bar. According to this when the low price of the recent day increases from the low of the past day but that particular stock rallies and finishes above the last day’s high trend.
Same setup will be for the bearish example but opposite to that price action.
spring strategy at support :
This strategy occupied only when that particular stock examine lowest price of present range and do this to come back early in particular zone for trading and all this process kick in a new incoming trend.
The best common misinterpretation of springs is mentioned as : Wait of market traders for the ending swing” A spring presents only when that stock comes into range of 1-2 % of the swing’s low.
Traders wait for the last swing low to be breached. Just to be clear, a spring can occur if the stock comes within 1% to 2% of the swing low.
These bars occurs when lot of candlesticks are mixed together same like as action of price starts with coil at support.
These candle sticks will be fit between the uptrend and low trend of present swing.
No Price Retracement:
Less price retracement is the proof primary trend is strong and likely to continue.
The main important thing is that the Retracement should be small than 38.2 %
When stock tries to examine the latest swing for its value low or high.
Long Wick Candles
The long wick candlesticks are best trading techniques which are favored by many professionals. These techniques consist major gaps which are down and up.
I hope in this topic you have find best about the price action trading strategy.
This will help in future to trade without using indicator but as a professional. All about the price action trading strategy is presented in it.
Which of the strategy is best mention in comment.
If you want other posts related to forex trading then visit this regularly.
• price action trading strategy is used to indicate strength trend in the trade.
• Its calculations are based on moving average price.
• It is used to differentiate between trending and non-trending conditions.
• It helps to identify profitable trade.
• From the rise and fall of lines in the price action trading strategy graph, the traders sense the price climax.
HOW TO INSTALL price action trading strategy:
• First step: – Download the price action trading strategy for Meta Trader 4 platform.
• Second step: -Copy price action trading strategy for Meta Trader 4. mql4 to your Meta trader Directory/experts/indicators/
• Start or restart your Meta trader 4 Client.
• Select Chart and Timeframe where you want to test your MT4 indicators.
• Search “Custom Indicators” in your Navigator mostly left in your Meta trader 4 Client.
• Right-click on price action trading strategy for Meta Trader 4.mq4.
• Attach to a Chart
• Modify settings or press ok
• In the end, the price action trading strategy for Meta Trader 4.mq4 is available on your Chart.
How to remove price action trading strategy :
• First step: Select the Chart where is the Indicator running in your Meta Trader 4.
• Second Step: Right-click into the chart.
• Third step: Indicators list.
• At the last: Select the indicator and delete it.
These are simple and easy steps that you need to follow before starting trade because it gives you buy and sell zone indicator with almost 90% precision.
Ahead you are going to begin in real account trading you need to trade at the minimum for one month as a demo in any MT4 or MT5 brokers. It awards you more potential for getting quality payback in long or short term trading across also moving average.