Price action is a form of technical analysis and it uses candles on a chart which represents data. This data shows what the market has been doing for the specified time range. All economic data and global news that effect price in any way will be reflected on the price chart so it eliminates almost any use of following the news. Candlesticks patterns, engulfing patterns and crosses are all examples of interpreted price action.
Forex price action trading
- Thread starter Rambo35
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If I am not wrong I am ever reading about chart pattern in myfxbook, mght you can try to visit there, so many pattern name but I can't remember name of pattern, just learn basic idea using this pattern with look demand and supply theory
if you google, you can find many price action school but i wanted to know if any of you could recommend one, there is so much spam out there
Why the gold price is gradually going up and up. Any idea that it will reverse back.
Thanks
Thanks
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this guy says Gold is approaching the strong resistance zone
https://www.tradingview.com/chart/XAUUSD/fO7uw02L-xauusd-Keep-an-eye-on-Strong-resistance/
https://www.tradingview.com/chart/XAUUSD/fO7uw02L-xauusd-Keep-an-eye-on-Strong-resistance/
Does anyone here consider the Gold-Oil Ratio in determining medium to long-term direction? Historically (over the past 40 years) the correlation between Gold and Oil has been 0.835 fairly consistently, so where one goes the other tends to follow. The average Gold-Oil Ratio over the same historical period is 15.4 barrels of oil to 1 ounce of Gold. At present this ratio is 29.97. So, either Gold is significantly overvalued, or Oil is significantly undervalued. For the ratio to come back to average, either Oil needs to rise to $85.25 a barrel, or Gold needs to fall to $672 an ounce. Oil stockpiling continues, and the world economy, and hence, demand for Oil, remains shaky, so my bias is towards lower Gold prices into the foreseeable future.
Just for your general information and edification ---Price action is more a process for determining future prices and market direction rather than a definitive system. And because it is the product of each traders individual experience no two price advocates will have the same methodology, although they can be quite similar. To get started take the most simple algorithm possible, for example " if the price goes up I buy the next bar, or if the price goes down I sell the next bar" (or vice/versa , it really doesn't matter ). On average you will be right about half the time whichever you have chosen according to the principle of large numbers. The more cases you choose the closer your distribution to 50/50. It is the examination and study of the "wrongs'' that should lead you to adjust and tweak your algorithm and hopefully improve it to a point where your winners outnumber your losers. By improvement I mean , and this is very simple, for example :the price went up , so I bought, I was right last time it went up ,but wrong this time why ??, well this time it broke the Bolly Band and last time it didn't , perhaps my algorithm varies with a Bolly Band cross, ( and it may ). Obviously the more metrics you put in the more permutations and combinations that are possible so keep it simple or your algorithm will grow to unmanageable dimensions. This, I know , is a long and tedious process, but it has worked for me and i believe will work for any person willing to put in the time and effort and apply their best intellect to the problem. I am available to answer any specific questions about my version of price action on this thread or by PM on this forum . I hope this has been of assistance and clarification for you'
there is definitely more to it than that.
I mainly trade price action patterns near Support of resistance. so the price can go up and i d sell
I mainly trade price action patterns near Support of resistance. so the price can go up and i d sell
Thats' one of many options. Of course theres' more to it than that, as you say. Discovering whats more is the process I was describing and an approach to doing that is what I outlined in my posting. ( not a definitive step by step system., but rather a way to arrive at one eventually ) If you have another method other than an empirical analysis let us know and we can dis.cuss
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I have seen many another trader also trade based on this area, they will focus on support and resistance area as trigger decision, and also put stop loss near on this area
I like approach of Nial Fuller and Justin Bennett to price action. Btw, they have informative blogs where all the patterns described.
I like the idea of price action itself and if you know some interesting resources on these theme, will be glad to see them. However, maybe I've already read all of them
As I use only MACD and price action patterns in trading.
I like the idea of price action itself and if you know some interesting resources on these theme, will be glad to see them. However, maybe I've already read all of them
As I use only MACD and price action patterns in trading.ok i ll check them both thx
I like approach of Nial Fuller and Justin Bennett to price action. Btw, they have informative blogs where all the patterns described.
I like the idea of price action itself and if you know some interesting resources on these theme, will be glad to see them. However, maybe I've already read all of them
Price Action trading strategy is my favorite trading system. In addition, I use EMA to point out the dynamic support/resistant levels. Besides, D1 is my 1t choice to implement my PA knowledge.
Price Action gives more information, than candle analysis, allowing to create more complicated strategies. At the same time, it is possible to backtest PA-based strategies, which is impossible for fundamental ones. For example, we can create some patterns and check their performance using special backtesting software like built-in Tradingview tester or Forex Tester. As the result, you will get the information on maximum drawdawn, the win rate and other necessary data.
PA strategies often work the same on different markets, so you will be able to apply your skills in stocks or futures.
PA strategies often work the same on different markets, so you will be able to apply your skills in stocks or futures.
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