One forex trading strategy that does not get the credit it so desperately deserves would have to be price action. Its older than any other trading method, more importantly, a lot more accurate.
It still amazes that more people don't even notice what kind of pip monster this strategy is.
It's a real shame that this has happened. But traders can only blame themselves for this. As technology has improved, so has the level of laziness from traders. They would rather spend the hundreds of dollars on trading software that is just not needed.
In the present time we live in, you can go to any forex forum online and get your fill of useless indicators, trading robots, and other stuff that just doesn't work.
But how often do you hear about price action? My guess is not too much. It is a bit of a broad term, which is why I think most traders dismiss it, and go for the easy shortcuts. But they don't see all the information they are missing. For example:
Price Action Patterns: Here is something most people aren't aware of. The market has price action movements which can be used to tell where the future direction of the price is headed. The great thing is that it is duplicated over and over again, so you can literally enter and exit a trade a bunch of times during the day.
The Trend: Ah...yes the trend. It's a word you hear a lot about but most traders wouldn't be able to spot it, if you gave them a road map. I'll give you a clue. It has nothing to do with moving averages. As pretty as they might look on your charts, they won't tell you where the trend is headed.
Support and Resistance Areas: I can't help but laugh when I see those Metatrader indicators that supposedly give traders the support and resistance lines. These are just basic mathematical formulas. Real Support and resistance has nothing to do with math. It can be seen in plain sight without any kind of formula.
It still amazes that more people don't even notice what kind of pip monster this strategy is.
It's a real shame that this has happened. But traders can only blame themselves for this. As technology has improved, so has the level of laziness from traders. They would rather spend the hundreds of dollars on trading software that is just not needed.
In the present time we live in, you can go to any forex forum online and get your fill of useless indicators, trading robots, and other stuff that just doesn't work.
But how often do you hear about price action? My guess is not too much. It is a bit of a broad term, which is why I think most traders dismiss it, and go for the easy shortcuts. But they don't see all the information they are missing. For example:
Price Action Patterns: Here is something most people aren't aware of. The market has price action movements which can be used to tell where the future direction of the price is headed. The great thing is that it is duplicated over and over again, so you can literally enter and exit a trade a bunch of times during the day.
The Trend: Ah...yes the trend. It's a word you hear a lot about but most traders wouldn't be able to spot it, if you gave them a road map. I'll give you a clue. It has nothing to do with moving averages. As pretty as they might look on your charts, they won't tell you where the trend is headed.
Support and Resistance Areas: I can't help but laugh when I see those Metatrader indicators that supposedly give traders the support and resistance lines. These are just basic mathematical formulas. Real Support and resistance has nothing to do with math. It can be seen in plain sight without any kind of formula.
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If you want to start having a deeper understanding, you should really visit forex trading price action forex education.
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