price action trading, will change the way of your trading you may have checked many Forex strategies but this strategy is the easiest the concept is very easy and very simple to trade with both demo and live account you can lean it in less than 20 mints but it is so useful that can change your trading style.
The Price action is all about the support and resistance level, momentum loss through candle sizes and shapes.
We trade on support and resistance when the price is on pullback we will tell you everything when to enter a trade with this strategy and when to exit.
And how the momentum loss through candle sizes and shapes make our strategy easy and profitable.
The Price action strategy
In this strategy, we want to see the sizes of candles getting smaller and smaller while the reach to the level of support and resistance because it shows the price losing their momentum.
A very key point in this strategy is the price should lose its momentum while approaching key levels or support and resistance.
- First, we find a level of support and resistance, a level where price is coming for the pullback.
- After finding the area notice when the price is coming towards support and resistance the size of the candle is getting smaller and smaller and when the price touches the support or resistance line you see long wick candle rejecting support or resistance line.
- See the price is moving down with full strength and we can see a big candle getting smaller and smaller and then even smaller and now it has changed into green long wick candle that is rejecting support. And see the next candle is also rejecting support with long wick thus the price has changed its direction.
- The smaller candles show the sellers are losing steam. They are losing their power from the market.
- Now if the market is uptrend the strategy will be the opposite of the downtrend. Everything will be the same just the strategy idea will change.
- One thing else which is very important to note very carefully. When the price is going towards resistance or support look carefully for a candle to change its colour when it reaches the support or resistance line.
- Be careful if the candle is small and getting big when approaching the support and resistance line. Don’t trade and stray away from the market.
- You can see a big difference in good price action and a bad price action the good price action can give you good trades and pips but the bad price action will harm you. So stay away from bad price action you can see the difference in image down.