Saturday, 18 May 2019

More Value Forex Trading With Price Action

A combination of several technical indicators



Technical indicators are derived from changes in price action patterns, so why don't we learn to read price movement patterns? By applying several technical indicators on the trading chart, we find it difficult to look at the price action setup that occurs and is ambiguous in capturing the real picture of the market. A combination of indicators that can work well in market conditions and certain time frames may not work in different conditions and time frames. Between one indicator and another often shows trading signals (signals for buy or sell) that conflict or conflict of interpretation. In addition, technical indicators tend to be lagging in giving predictions because they are calculated after changes in market prices. Combination indicators are usually used to confirm each other, for example the RSI or stochastic indicator cannot indicate the trending market conditions compared to the ADX indicator, but ADX tends to be slow in anticipation. With the price action method there will be no conflict of interpretation as above because it does not depend on many technical indicators in analyzing the market, and only uses simple indicators to determine the momentum in opening a trading position, usually exponential moving average (ema).

Interpretation of news on economic fundamentals

Indeed there is no harm in subscribing to the fastest news sites in providing the latest information, especially for fundamental news releases according to the economic calendar. The problem is that market price movements are very much determined by the emotions and feeling of market participants about what is most likely to occur based on their expectations, not entirely based on logic. They trade based on expectations of how the news will affect the market. When the actual news has been released, the expectations may change. Therefore often market price movements are the opposite of what should have happened after the news was released. So we cannot always assume that if the results of a news release are better than before or better than predictions (forecast) then logically prices will rise and vice versa. What is clear is that all the factors that we might not know have been reflected in price movements when the news was released. The setup of price action that occurs in a trading chart is a reflection of changes in the variables that drive the market including fundamental news releases.

Also Read : Memorizing Profit Trading Every Day, Could It Be Done?

Trading with the price action method

From the description above, it can be concluded that forex trading with the price action method does not require robots or trading software, no combination of technical indicators is needed, and no detailed analysis is required of the fundamental news to be released. If you want to trade with price action, clear your trading chart from complicated technical indicators because the indicator is lowered from changes in price movements. Avoid excessive analysis of fundamental news releases. Learn the basic concepts of price action that are simple, effective and accurate.

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