whenever you take a trade in the market you are taking a trade based on what the price has already done, not on what it will do next, price can go up down and sideways
your in an up trend, you see a buy trade, you take it , then the price starts to fall, you exit, you take a loss, only for the price to go back up and continue in a trend up,
so whats the best way to read price action in forex, buy the dips in an up trend, sell the rally's in a down trend ?
leave your comments below on this psychological behavior that happens all the time in the markets.
There is not a simple or straightforward answer to your question. You need more time to understand price action well. I would like to suggest Price action educational site by Chris Capre called 2ndskiesforex. Free and reliable materials there and hopefully you can clarify most of your doubts and queries.
Have a look
History is the best predictor of future. As we know history tends to repeat by itself. What we have to do is just identify the market condition and look out for trading setup to trade.
Sometimes we win, sometimes we lose, just like doing business, we have cost and some small losses. Just keep our losses small then we will be likely to make profits in the long run.
You've got what is needed to make money in trading. Keep it simple and that's all we need
Price action is the best way to read the market. BUt you need to understand all the others elements to trade it with success. You need to adapt to the market condition to uses any plan or strategies. To start if you want to put the odds a little bit more on your side you should:
• Try to only trade on the right side of the trend.
• Don't try to trade breakout.
• Trade pullback
• IN a uptrend wait for a pullback and enter at major suppport
• IN a downtrend wait for a pullback and enter at major resistance
• Always put your stop loss
• But risk than 2% of your total account on any trade.
This will be a good starting point
I second that 2ndskiesforex is one of the best places to learn Price Action.
One more line that might be useful :how price action trading changed my life
"Price action forex trading at its simplest!"
Another wonderful Article By Chris Capre
First Parah from the Article.
Setups, Price Action & Context | 2nd Skies Forex
There are a bunch of ways of trading price action, and there is no single truth or fixed method to succeed. I personaly love trading price action because I believe
1) it's the purest form of trading
2) it's the best way to trade without being bombed by irrelevant data (read: indicators)
I think every noob should learn price action trading very early on and let indicators go. If you're looking to learn price action trading, I would recommend opening a demo account, a M1 EURUSD chart naked (no indicators) and just trade what you see for 2 weeks. Take note of each trade and your progress. You'll see an improvement right away.
If you want more formal teaching about PA, I liked the lessons on there Price action trading.
Thanks for the 2ndskiesforex.com link, this have been very helpful for me in understanding how price action works.
Glad to hear that you benefited from the 2ndSkies content. I learnt most of my advanced PA skills from their PA course and not only was it helpful, but opened a new world of pro trading.
Did you take the course?
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