Maybe on youtube so many video shared for tutorial forex, and will good indeed learn from trader that already having better understanding with forex market activities and to determine trend market as trader also still need risk management control due not always perfect in analysis
How to understand trend and price action in forex ???
- Thread starter danielelton
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Well said .One should always trade with the majority order flow because it is where high probabilities of winning are.
Maybe like as many trader said if trend as our friend, if any trader having good understand to ride the trend hence they can like as dancing with the market, but this is not easy because also need strong psychology trading to determine trend flow
Yes forum forex like as earnforex is good source to learning and we can learn from reading, but about skill trading also will depending with each trader skill to absorb knowledge, although already reading many times but if can't understand hence it sign brain is not smart
Hi danielelton
I could probably give couple of good example on what the price action is.
1. Break out. The classical example (which I'm actually trading from time to time 🙂 ) is the London open breakout on some pairs. If you open the EURUSD chart and mark time for Asian, European and US sessions you'll notice that usually (not always but usually) during the Asian session the pair bounces in the narrow range - maybe 100 - 300 pips. But once the trading in London starts we can see the big moves. So you can trade this price actions - moves at some specific point in time. The timing increases the probability. And you can, for example, do something like this: if price moves out of the range for X pips (for example it can be predefined value - i.e. 100 pips - or some fraction of the Asian range - for example 30%) you open a position.
2. Big price moves supported by volume. Try to open EURUSD chart again (time frame is H1) and check the bars which are 2-3 times higher than avrage bar in previos periods (for example, current bar's range - difference close - open - is 2 time bigger than average bar among 10 last ones). Then check the volume (in case of Forex it will be tick volume). If this volume is also higher that average (for example looking back for 40-50 bars) that we definitely have a price action and there is a good probability that the price will continue moving in the direction of this bar.
The main thing to remember: there is no absolute values which will be working for the rest of your life - i.e. if last two years you've traded breakouts when price moved 150 pips out of range doesn't mean this will last forever - the market can change and next couple of years you'll see only the losses. So you need to adopt from time to time (maybe once in a 6-9 months).
price action is to be recommended among various trends.we have to look for the current market scenario first of all and then we will be in a position to assess the signals that we are having with us.
You've hit the nail on the head! When you understand price action everything else begins to make sense...a trend line, SR level, price pattern.
90 percent of companies selling "buy singals " have people on watch 24 7 watching a freee site called
investing.com
which gives free signals, 90 percent have direct live feed from this site because this site is connected to forbes so they can't suddenly stop posting there buy signals .
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these sites that offer buy signals are hacking feeds from investing.com trying to sell people buy and sell signals from the largest corporation of invester network which is investing.com
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When market breaks a key point and retest and again goes with the same direction, then follow that trend! Yes, support and resistant levels are very important in that case! In addition, when market accumulates in a level and breaks massively, then I also count this trend! And naturally I always try to trade here according to the market flow rate I mean current trend status!
The new traders should try reading the support and resistance which is the best way to learn the trends and price action in forex trading.
In this case trend line and support/resistant levels help me a lot! As a Price Action trader identifying the market trend is my main concern! In addition, I am interested in only trendy market; I never use the opportunity of reversal market!
Hello, Ary! Can you share please your tactics on drawing support & resistant level? I trade based on only fundamental but now I am very much interested to learn S/R trading! Thanks in advance!
Learning in my opinion never ends however it is a very good idea to know about S/R and learning the trends before you jumps into trading. Why not googling a little about these terms or finding some webinars on the same topic and i guess you will find a lot of stuff similar to these..!
After trading chart; support resistant tool is my main weapon; I can understand the value of any trading level based on the structure of support/resistant.
Before a trader can expect to make his investment decisions he must go through a proper understanding of the market in the all systematic manner. Choice of trading strategies should be done in correct manner. What does that mean by correct manner? A trader when choosing his trading strategies must give proper attention on his trading abilities to find out that he is actually capable of taking complete benefits of those strategies.
Understand trend by identifying higher highs and higher lows for uptrends, or lower highs and lower lows for downtrends. Price action means reading candlestick behavior at support and resistance levels. Focus on clean charts, market structure, and patience. Practice spotting patterns instead of relying only on indicators.
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