Price Action – Forex Bootcamp
Technical chart analysis is the multiple patterns the chart shows and all forms of price action. Also the overall analysis and the movement of the market over a certain time period. A soon you’ve learned to master the price action and how to determine the price action. You are ready to make a benefit of certain movements in the market.
Price Action is making the most of your trading decisions on a clean chart. Free of indicators and influences from the past. You could add the moving average for some extra help.
Since Price Action reflects al variables of a certain market over a certain period with the help of price indicators as Stochastic or MACD. You won’t need all the other indicators since they simply just distract you. Only the information you need to make a winning strategy is the raw movement of the market.
Price Action Analysis with TheForexScalpers
As told before, economic variables will move the market as well. Think of what I told you about fundamentals.
Movements like this are clearly recognizable. Just for the fun of it you should look up the chart of GBP/USD. Around the Brexit Referendum you will see a clear drop in the value of the GBP.
Price action analysis make use of the overall cure price data. That’s why this strategy could be used on every trade at the financial market. Before starting Price Action strategy make sure you start with a clean sheet. Remove all other distracting indicators in the past.
There is a big difference between charts with indicators and charts without. Example underneath will show you the difference. Take a look at both charts and tell me which one looks easier to analyze? Also charts with lots of indicators won’t give you more information. They only give you distracting information from the past that you really don’t want to know.
Before we move on training your technical skills it’s important knowing the different time frames. Which time frame to use and which one not to use.
The Top Down analysis is an interpretation of the components of the ‘bigger picture’ and there of you go look at the smaller components. The most common time frames used for a forex analysis:
Monthly, Weekly, Daily, 4 hours, 2 hours, 1 hour and 30 minutes.
For a trader it is really important looking at the long term. Is there a visible trend or did the pair stay still land stabile? Support and resistance levels and other patterns are important by analyzing the long term. For example: You start looking at the monthly and weekly charts before the market opens at Sunday night.
Best Broker: IcMarkets.