Part 8: What Is Strategy forex youtube video Forex Trading Strategy? What Is A Forex Trading Strategy?
There are many different Forex trading strategies. However, there are some basics of reading a price chart that you need to know before you can move on to learning any one strategy in-depth. Support levels are created as a market turns higher. So, if a market is moving lower for example and it then changes direction and begins moving higher, it either has created a level of support or bounced off a previously existing level of support. Resistance levels are created as a market turns lower. Identifying and plotting support and resistance levels is by no means an exact science. Now, one important point that I want you to know about support and resistance levels is that they are not concrete.
Many traders seem to think support and resistance levels are concrete and that they should never trade a setup if there is a support or resistance level close by, this can result in them getting analysis paralysis and never entering a trade. An uptrend is marked by a series of higher highs and higher lows, and a downtrend is marked by a series of lower highs and lower lows. I like to trade with the near-term daily trend by looking for high-probability price action strategies forming within the structure of the market trend. What I mean by this is essentially looking for price action setups forming near support as a market rotates lower in an uptrend and near resistance as a market rotates higher in a downtrend. Since trends do end, we can also take advantage of this information. However, counter-trend trading is inherently riskier and more difficult than trading with the trend, so it should only be attempted after you have fully mastered trading with the trend.
When a market is in a trading range it means that it is consolidating between a level of support and resistance. We can use the fact that a market is bouncing between support and resistance to our advantage. As the market approaches the support or resistance boundary of the trading range, we have a high-probability entry level, since risk is clearly defined just above or below the resistance or support of the range. We discussed Forex charts in Part 7, but as they are very important to the way that I trade and teach price action, I wanted to give them a little more time. It’s important to understand that candlestick patterns have certain terminology all to their self that you should become familiar with before you attempt to master a trading strategy like price action. You are probably going to come across many Forex website selling Forex software that they claim will fully mechanize the process of trading, so that all you have to do is click your mouse when the software tells you to and then rake in the profits. The point is that trading software cannot work over the long-term because the market is constantly changing and as such, it takes the discerning discretion of the human brain to effectively trade the markets over the long-term.
Part 3: Long or Short ? Part 4: What is Professional Forex Trading? Part 5: What is Fundamental Analysis? Part 6: What is Price Action Trading Analysis? His Excellency Nial Fuller, i call him EXCELLENCY because of his SIMPLE approach to Forex Matters,i was a non-starter in this game but after reading his well articulated articles i am confident and have the audacity to say.
Your email address will not be published. Chapters Part 1: What Is Forex Trading ? Part 10: What is Technical Analysis? Disclaimer: Any Advice or information on this website is General Advice Only – It does not take into account your personal circumstances, please do not trade or invest based solely on this information. High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets.
Forex trading involves substantial risk of loss and is not suitable for all investors. Part 8: What Is A Forex Trading Strategy? What Is A Forex Trading Strategy? There are many different Forex trading strategies.