Saturday, 2 November 2019

6 Basic Price Action Trading Frequently Asked by Traders

Trading methods using Price Action are endless to discuss. For beginners, there are certainly a myriad of questions about the basis of Price Action Trading that want to be known. A number of obstacles you can find during the trip looking for answers to these questions. Not infrequently, this step stops because they don't know what else to ask about Price Action.

1. What is Price Action? As you know, the forex market has sellers (Buyers) and buyers (Buyers). When buyers and sellers agree on a certain price, they will start trading. Over time, the agreed price continues to change, causing a price movement. Galen defines Price Action as the study of price movements, in order to understand what the market has, is, and will do. Price Action adherents are usually not too dependent on technical indicators that use mathematical formulas to produce trading signals. Usually, technical tools used are only limited to Moving Average and Fibonacci retracement level lines. In practice, Price Action traders will enter and exit with reference to changing patterns, shapes, or setup candlestick bar formations. This is the basis of Price Action Trading that traders must understand.

2. Is Price Action Useful? The next question about the basis of Price Action Trading is: is Price Action useful? The answer is of course yes! Price Action is a trading method that is powerful enough to understand current market sentiment. Understanding of market sentiment is very important for traders to be able to formulate entry and exit points correctly. As you know, trading without knowing market sentiment is the same as driving a car with your eyes closed.

3. What Time Frame Is Most Suitable For Price Action Trading? It is undeniable that Time Frame is the first input you must setup when opening price charts. Because there are many choices, maybe you can have difficulty in choosing the right one. You must understand that there is no magic time frame. If you think there is a magic time frame that can provide good results continuously in trading, you should not have to trade first. According to Galen, the answer about the best Time Frame for Price Action, can be determined by answering the following questions: How much risk can you take? First, regarding the risks that you can take, of course each trader has different risk strengths, depending on the size of their trading. According to Galen Woods, traders with little risk are usually more inclined to use a low Time Frame. While traders with large capital usually use a higher Time Frame.

4. Which is better, trading with indicators or price action? This is also the basic question of Price
Action Trading that is commonly found. Galen stressed that this kind of thinking should be thrown away. You don't need to choose between trading with technical indicators, because basically, you can use both. If you are still confused dropping hearts on these two choices, the solution is to explore both directly. As the saying goes, don't know, don't love, try to approach technical indicators and Price Action. Then, decide for yourself which of the two options that fits your trading style.

5. Is Price Action a Technical Analysis? The answer to this basic Price Action Trading question is: Yes, you are right. Price Action is a form of technical analysis. Understanding of Technical Analysis itself is the process of collecting data on the market, starting from price, volume, and time. Galen said that because Price Action focuses on price and time movements, this one method can be called Technical Analysis.

6. What is the Best Price Action Strategy? Determining which is best is relative. For Galen, the best Price Action strategy is the skills and experience you have to execute funds into profit. That is, the Price Action strategy that you think is best, may not necessarily be the best when applied by others. Questions like this cannot be denied, indeed often appear in the basic material of Price Action Trading.

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