In the forex market in general, the right trading method is an important guideline to help traders win in entry. Price Action is a trading method that receives a lot of attention from the Finnews Trader Community to choose to implement. So what is Price Action, let's find out with Finnews24 through the following article.
What is Price Action Strategy?
Price Action (abbreviated as PA) price action trading method is a type of trading based on market judgment based on price movements over time. Price Action trading is not based on news or any technical indicators.
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What is Price Action Forex Trading Strategy?[/caption]Price Action Forex trading means that traders will be based on the change in the value of an asset over a certain period of time to make a decision to open a position.
Although indicator charts are ignored, in return candlestick charts are of great interest from price action traders.
Having a smooth entry point will help traders control the risk. Along with that, will bring a lot of profit. However, to be able to trade according to price action. Traders need to keep an eye on the following components:
- Graph dissection: Top-down judgment, combined with analysis of the operating structure of the graph market and decision making.
- Position check: (check position) investors need to make sure that the price position matches their previous prediction so that they can make the best entry option.
- Trading Signals: Breakthrough unexpected events in the market or a series of candlestick patterns. (High impact events, not news, mere rumors).
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Basic Guide to Trade Price Action to predict asset prospects in the Forex market
After the Trader has an idea to open a position to trade any currency pair. Then the price action strategy will combine with certain factors:
- Overview trend chart analysis
- Determine the Entry Point (entry point) to open the right trading position
Step 1: Technical analysis
Although Price Action is a trading method that does not rely much on Indicators, if it is to have the ultimate victory in the forex market, it is imperative that investors understand the most basic technical analysis. This is an important step because the investor must observe the chart carefully and answer the question for himself:
- Is it possible to enter the forex market trend at this time?
- Which asset pair should I choose in the forex market right now to trade?
Players must understand the overall market context and make decisions. For example, when the market is showing a clear Bull sign, investors must consider choosing an opening position to avoid becoming a reluctant top swing trader in the short term.
Step 2: Set goals
Since building the direction of their own price motto, users often plan to enter the areas they wait for. Next, techniques will be used to highlight potential price action information.
Step 3: Predict
At this point, you need to wait for the conjecture information to come here. Assume the information (candlestick) arises in the place of your conjecture. Or it is possible that being extremely close to that area is able to provide services.
Step 4: Investigate the transaction
Users need to investigate the purchase to guarantee it has the opportunity to develop and generate more money than you are dangerously spending. Of course, it's more likely to be profitable ahead of time to the next texture level on the chart. You can also look for technical blockers for price moves.
Step 5: Expect the goal
Since doing the steps to quantify the deal. Next you need to place an order and then stay and wait for the target. When all points are connected together, users can have a high rate of building trades with much greater peace of mind.
Pros and cons of the price action method
After understanding what price action is , let's continue to dive into the pros and cons of the Price Action trading strategy.
Advantages
- Easy to learn method for newbies, price action documentation available at the end.
- The price action trade strategy makes the action simpler for traders.
- Timely reflect market movements through charts.
Defect
- Price Action is a subjective trading method.
- The risk from Price Action trading will be higher than with other trading methods because it is only based on the trend to judge the direction of the market's movement.
Although PA has its advantages and disadvantages, it can be said that this method is the easiest and most suitable strategy for the majority of traders. To be able to get high profits, Finnews24 advises investors to consider combining many other trading methods to complement each other.
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Some effective Price Action Trading trading strategies
Phần trên là toàn bộ nội dung về Price Action là gì, những ưu nhược điểm của chiến lược giao dịch theo hành động giá. Phần tiếp theo đây là một số kỹ thuật giao dịch Price Action dành cho người mới:
Chiến lược PA với mô hình Inside Bar
Giao dịch Inside Bar là gì chắc hẳn là điều mà các Trader mới vẫn còn thắc mắc rất nhiều. Trên thực tế , đây chính là cấu trúc biểu thị hành vi giá gồm 2 cây nến. Nến mẹ là nến dừng chân trước, nến còn lại nằm trong khuôn khổ cao thấp của nến mẹ.
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Finnews24: Chiến thuật PA với mô hình nến Inside bar[/caption]Trong khu vực kinh doanh có chiều hướng thăng trầm, người dùng thường dùng cấu trúc kế hoạch này để tạo sự chuyển biến mạnh mẽ. Hoặc dùng thương vụ dưới dạng thông tin đảo chiều nếu được hợp thành từ cấp đồ thị chính.
Chiến lược PA với mô hình Pin Bar
Pin bar là gì là thắc mắc được đề ra trong kế hoạch hành vi giá. đây chính là cấu trúc có độc nhất 1 nến. Chuyện này biểu hiện sự lật ngược trên khu vực kinh doanh và không đồng ý về giá. Trong khu vực thị trường có chiều hướng, khuôn khổ bị kiểm soát mà thông tin vẫn chạy ổn định.
Không những vậy, cấu trúc pin bar có khả năng được mua bán theo xu hướng đối diện với hướng mà đuôi nến đang chỉ. Nó chứng tỏ sự khước từ của giá và lật ngược chiều từ ngưỡng hỗ trợ hoặc phản kháng mấu chốt.
Chiến lược PA với mô hình Fakey Pattern (giả)
Some forex beginners always question what is the trading strategy with the Fakey Pattern? In a nutshell, this is the wrong jump structure of the inside bar. When it occurs for a short period, within the framework of the parent bar or the inner bar. But causing a reversal and then closing is the Fakey Pattern.
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PA Strategy with Fakey Pattern[/caption]Price Action Trading Types
Trade on Pullback
The most trending price action solution used by investors is a pullback strategy. That means traders will by price alignments go against the key wave and retest the resistance or support zone.
Trade Price Action on pullbacksIf the price is in a downtrend and the market area has created a support area, when the price breaks that support and comes back to retest it again, this is the right time for you to take the risk. enter a sell order. As such, investors are more likely to find entry information easily through understanding price action.
Trading with a reversal strategy
The price action reversal strategy is also a popular trading method that many investors prefer to use. This method requires traders to identify areas of strong support and resistance that the market is unlikely to break through. This is also an opportunity for traders to find the advantage of entering orders at a good price.
Compared to trend trading, reversal trades are said to be more risky. However, traders who trade according to this method do not need to worry too much, as long as you understand the rules of the game and follow important principles, you can completely control the risk according to your goals.
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Trade price action with reversal strategy[/caption]It is important to note that the market will often experience false breakouts. Therefore, investors need to know how to spot all these false breakout points to avoid huge loss when trading. Specifically, traders need to keep a close eye on how the price returns to retest the trendline.
For example, if the price moves one circuit to the resistance line, there is a high probability that a pullback will not occur. On the contrary, when the price moves near the resistance area and shows signs of slowing down, it shows that the selling force is very strong. At this point, traders can enter a sell order. The rate of successful trades will be even higher if at this price area there is a 3-peak pattern in a downtrend.
Trading on a breakout strategy
Break out strategy has never been "hot" in the hearts of investors. There are 2 ways to trade price action breakouts as follows:
- Enter the trade as soon as the price breaks out of the support or resistance line. At this point, the market has formed a clear trend, traders need to identify this trend and wait for the price to break out of the trendline to look for opportunities to "eat" high profits.
- Enter when the price breaks out of an important price area. This way the trader only needs to find an important resistance level such as support and resistance. Then wait for the price to confirm a break out of that level and look to trade with the trend
Price Action Strategy Document
Share documents about Price Action trading strategies. You can download the full set of specific instruction manuals on online price action trading strategies here .
