Becoming a professional price action trader
Forex market is all about noteworthy traders. If you are in the market or if you are hoping to hop into the market you should understand that there are certain important factors that you should learn. You may be the professional trader with all the knowledge about forex trading, but educating yourself more and more will not bring you any losses. So here we go how to become a noteworthy price action trader? If you are new to the market, you will not have the fair knowledge on price action so let us give you some brief explanation of the price action it is the best indicator among other lagging indicators since the price helps the trader to decide whether to trade or not by the price analysis.
If you want to become a noteworthy price action trader you must use price actions to direct to the profitable trade, not the other indicators. Actually, price action traders are more of technical traders because they rely on price movement, charts, volume and other raw data. It does not mean that the price action trading is easy, yes it is harder than the others so you must have sound knowledge about it.
Tips to become a noteworthy price action trader
If you want to become a noteworthy price action trader in the forex market you should understand the price action strategies in better ways. If you understand the price action strategies then you will be able to make trading decisions logically and effectively.
Support and resistance level strategy: This strategy depicts the psychology of demand and supply. The support and resistance can be the best strategy if the traders know how to deal with it. Actually, there are types of support and resistance levels such as swing points, Decision points, Breakout zones, Price action swings etc. but the key level of support and resistance strategy will help the traders to understand the best time to trade. There is a turning point in the market in such situation and also, it shows the good risk-reward ratio.
Figure: trade using the support and resistance levels
Combo trading strategy (pin bar/inside bar)
The pin bar strategy or inside bar strategy which one of the above strategies will you adopt? What if the pin bar strategy comes along with the inside bar strategy? We will explain you about it in the combo trading strategy i.e. the combination of pin bar and inside bar strategy. When you face a situation to trade with the combo trading strategy keep the following points in your mind the validity of the pattern is in the key level, time frame, and the close to the pin bar. We hope we did a job well done.
Figure: trade using the combo trading strategy
The price action strategies are important to any kinds of traders. Every trader should have the pure knowledge on price action in order to trade the forex market perfectly. If you really want to become the noteworthy trader in the forex market you should learn the price action strategies. Even though learning price action strategies can be pretty hard, if you get the notch it’ll be the easiest. Every small step will lead you higher and higher so start learning price action.