Trading Using Price Action - page 2
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You need to learn specific price action trading strategies...at least that 's how I enter....you can learn more about this here: price action trading. As for support and resistance, check out this video on support and resistance.
thanks for the reply, I will try to better understand the price action
That is a great video on support and resistance and that helped out a lot. One question that I have though is a strategy that I have learned with Bolinger Bands is that when price gets over extended on a band top or bottom that indicates a buy or sell. Sometimes price is at it's peak like in the AUDUSD chart below so where would you put your stop loss then since there is no resistance level?
That is a great video on support and resistance and that helped out a lot. One question that I have though is a strategy that I have learned with Bolinger Bands is that when price gets over extended on a band top or bottom that indicates a buy or sell. Sometimes price is at it's peak like in the AUDUSD chart below so where would you put your stop loss then since there is no resistance level?
I would not be paying attention Bollinger bands man. Forget about all that crap...stick to price action and learn from Nial Fuller...it's really the best way to trade.
I am trying to get better and identifying support and resistance and trading the breakouts. Any advice at all?
I am trying to get better and identifying support and resistance and trading the breakouts. Any advice at all?
What you need to do is look for swing points in the market, or places where price rejected and moved the opposite direction. When you find more than one of these at around the same level, you can connect the highs or lows ...this is how you draw support and resistance...
@seantrade, thank you very much for the explanation. I think that helps a lot.
I learn better visually so I added a chart below that has support and resistance lines on it. It is not my chart but is this what you are referring to?
@seantrade, thank you very much for the explanation. I think that helps a lot.
I learn better visually so I added a chart below that has support and resistance lines on it. It is not my chart but is this what you are referring to?
Yes, it looks like you are starting to understand how to draw support and resistance levels, good work.
ITtrader Response
I am not an expert by any means, but I do have very good results with price action trading. This is what I can recommend if you are just diving into the subject.
1. Try to keep your charts as clean as possible. All you should really care about is support and resistance.
2. Always try to work with horizontal Support and Resistance. Diagonal varies too much from trader to trader. Horizontal is clear (or clearer).
3. I personally use the HMA Indicator to trigger my trades. I only use this as a confirmation on when to enter a position, as price action is what actually makes the trade happen.
Best of luck mate.
What is the HMA indicator? I use an MA indicator and bollinger bands.
The best way to determine horizontal support and resistance is where there is a large collection of horizontal bars right?
What is the HMA indicator? I use an MA indicator and bollinger bands. The best way to determine horizontal support and resistance is where there is a large collection of horizontal bars right?
Yes, horizontal lines. Indicators like bollingers bands just cloud up your charts in my humble opinion.