Price Action Trading (P.A.T.) is the discipline of making all of your trading decisions from a stripped down or “naked” price chart. This means no lagging indicators outside of maybe a couple moving averages to help identify dynamic support and resistance areas and trend.
HOW TO TRADE THE PRICE ACTION FOREX
TRADING SIGNALS
For example: If I call for a potential short at resistance, what would a failure of that look like?
- Price could base below resistance which is a bullish sign
- Price could break resistance, muted pullback on what could now be support for a long trade
- Price could simply break and not look back
Knowing what the failure will look like gets you one step ahead as other blindly play a short. Once they realize they are wrong footed, their actions could help propel your trade!
I am using what is presented at the time. Things change. As a trader, learn how to adapt to changing circumstances and you will be light years ahead of the competition.
Higher Time Frames?
I do take into consideration the weekly charts.
While you may be seeing an uptrend on a daily, the weekly could be showing me a downtrend using market structure and I will use that to base my outlook.
In clear markets where we have a trending pattern, I may not pay attention to the higher trend but will look for exhaustion in price which will influence my outlook.
ANYONE CAN SAY “BUY HERE OR SELL HERE”…(AFTER THE FACT)
With these Price Action signals, you will be able to see the “BEFORE” and “AFTER” results of my analysis, like this below which is the GBPJPY trading setup I posted and how price has hit the trend line and moved down 160 pips already:
How To Trade The Price Action Forex Trading Signals
I want to clarify some things regarding the free Forex trading signals that get updated regularly on this page https://entryhub.blogspot.com/search/label/indicators so that you know how to trade the price action Forex trading signals.
You will get “zones of opportunity” and a brief commentary stating what could happen in the zone. Remember though, price action will form and could change the commentary if I updated during the week – which I don’t.
For example: If I call for a potential short at resistance, what would a failure of that look like?
- Price could base below resistance which is a bullish sign
- Price could break resistance, muted pullback on what could now be support for a long trade
- Price could simply break and not look back
Knowing what the failure will look like gets you one step ahead as other blindly play a short. Once they realize they are wrong footed, their actions could help propel your trade!
I am using what is presented at the time. Things change. As a trader, learn how to adapt to changing circumstances and you will be light years ahead of the competition.
Higher Time Frames?
I do take into consideration the weekly charts.
While you may be seeing an uptrend on a daily, the weekly could be showing me a downtrend using market structure and I will use that to base my outlook.
In clear markets where we have a trending pattern, I may not pay attention to the higher trend but will look for exhaustion in price which will influence my outlook.
ANYONE CAN SAY “BUY HERE OR SELL HERE”…(AFTER THE FACT)
With these Price Action signals, you will be able to see the “BEFORE” and “AFTER” results of my analysis, like this below which is the GBPJPY trading setup I posted and how price has hit the trend line and moved down 160 pips already:
Now, it is good to study PRICE history so that you can learn what can “potentially”happen in the future.
But here’s a fact: price history wont make you money. It just gives you the knowledge.
The application of that knowledge to what is happening at the present- price patterns, candlesticks etc and anticipating what kind of outcome these will cause and taking trades based on that analysis…that is what is going to make you money (and throw proper Forex money management into this mix as well).
That’s why I sort of decided that:
- If you have gone through my forex price action trading course,
- the next reasonable step would be to actually show you what is happening in REAL TIME regarding price action trading and so you can see how these trading setups are forming and how price reacts to each setup etc.
- and also show you how you can trade those price action trading setups and what kind of price action trading strategies to apply in each case (nothing is always the same).
