What Is Price Action Trading?
Hi Traders. In today's topic, I will be demonstrating Price Action trading through the illustration above. These are the summaries to price action trading
1. Price action traders usually have lighter focus on more distant price history, most typically focus on the recent price action (3-9 months).
2. Less emphasis on indicators. Price action traders focus more on the reasonings and human emotion underlying the charts. Do get me right, majority of successful price action traders do incorporate indicators into their trading to get that additional confluence.
3. Price action traders do not just recognize patterns, we study and understand them.
4. We do not just take support & resistance as levels, we view them as a 'memories' zone. Think about the logic behind support & resistance, they work so well because it creates a sudden shock or fear in the market as majority is paying attention to them and looking at them the same way.
5. Price action traders are constantly questioning themselves.
6. It is not easy to be a successful price action trader if you're lack of emotional control. A calm state of mind is vital.
Thought process (Questions)
1. What's the current market condition? (Ranging, channeling, weak/ strong trend)
2. Should I trade? Does my strategies/ setups work well in this market condition?
3. Is it buyers OR sellers territory? Who's in control?
4. Where is the area of value and sweet spot for entries? Is there any key levels that I need to be aware of?
5. Where can I sensibly place my SL? Where's majority placing their SL?
6. What's people on the sideline thinking?
7. Where's my target? Is it realistic?
8. What if it doesn't go according to my plan? What's the alternatives?
9. Am I comfortable losing this trade? Is it worth the risk?
Personally, as a price action trader, being patient is essential. Lack of patience would lead to some self-sabotaging snowball effect, waken up those negative trading habits (FOMO, over trading, revenge trading). Understand that as price action traders we're trading what we see, not what we think, never impose your personal will and expectations into the market, it is not your ATM. Sometimes the best trade is not having a trade, knowing when to not trade is as equally important to knowing when to trade. Put in the effort, practice more, and learn from mistakes. Always be a student, stay humble!
"Trading is a ruthless business that does not take any hostages, so you better come prepared." - Nico Muselle
Trade safe.
Do follow my profile for daily fx forecast & educational content.
Hi Traders. In today's topic, I will be demonstrating Price Action trading through the illustration above. These are the summaries to price action trading
1. Price action traders usually have lighter focus on more distant price history, most typically focus on the recent price action (3-9 months).
2. Less emphasis on indicators. Price action traders focus more on the reasonings and human emotion underlying the charts. Do get me right, majority of successful price action traders do incorporate indicators into their trading to get that additional confluence.
3. Price action traders do not just recognize patterns, we study and understand them.
4. We do not just take support & resistance as levels, we view them as a 'memories' zone. Think about the logic behind support & resistance, they work so well because it creates a sudden shock or fear in the market as majority is paying attention to them and looking at them the same way.
5. Price action traders are constantly questioning themselves.
6. It is not easy to be a successful price action trader if you're lack of emotional control. A calm state of mind is vital.
Thought process (Questions)
1. What's the current market condition? (Ranging, channeling, weak/ strong trend)
2. Should I trade? Does my strategies/ setups work well in this market condition?
3. Is it buyers OR sellers territory? Who's in control?
4. Where is the area of value and sweet spot for entries? Is there any key levels that I need to be aware of?
5. Where can I sensibly place my SL? Where's majority placing their SL?
6. What's people on the sideline thinking?
7. Where's my target? Is it realistic?
8. What if it doesn't go according to my plan? What's the alternatives?
9. Am I comfortable losing this trade? Is it worth the risk?
Personally, as a price action trader, being patient is essential. Lack of patience would lead to some self-sabotaging snowball effect, waken up those negative trading habits (FOMO, over trading, revenge trading). Understand that as price action traders we're trading what we see, not what we think, never impose your personal will and expectations into the market, it is not your ATM. Sometimes the best trade is not having a trade, knowing when to not trade is as equally important to knowing when to trade. Put in the effort, practice more, and learn from mistakes. Always be a student, stay humble!
"Trading is a ruthless business that does not take any hostages, so you better come prepared." - Nico Muselle
Trade safe.
Do follow my profile for daily fx forecast & educational content.