Trading with Price Action!
In my last post, (How I reached the best method for trading!) I finished up by saying:
I had so many indicators and lines on and below my chart, that I was hiding the most important information of all. I will talk about it in my next post, as it fully deserves a post of it's own.
Yes, my charts were like spaghetti, and hiding the most important information of all!
Price action!
The more indicators and tools I added to my charts, the more I was hiding the truth! Once I realized it was price action (PA), that I needed to study, I just knew I had found a path to becoming a consistently profitable trader.
Now, I am not implying that following PA is the only way to trade profitably. I know successful traders who use other methods to trade for a living, but reading PA suits my personality. I can totally set my entry level, take profit (TP) levels, and place a tight stoploss. I just love tight definite stops.
Yes, I know I will miss many many trades because of this, as price quite often bounces before my level, but hey, as the pilot said, "I prefer being on the ground wishing I was in the air, than in the air wishing I was on the ground!" I can take these trades without batting an eyelid, and sleep like a baby all night. I have no problems with taking losses when price hits my stop, as beyond that level I do not want to be in the trade. I just move on to the next trade, as R:R takes care of my overall profits. See my post (It's All About Risk:Reward).
I've edited in this paragraph, as basically it was supposed to be in here.
Why Price Reading is reliable and Indicators are not.
Indicators are all derived from price, meaning they lag behind the market movement. So by the time an indicator suggests a trading direction or level, price will already have made the indicated move, and you are entering at the end of the price run. It's that simple.
What reading price really means, is determining the levels where the institutional traders, such as large banks are trading, so that you can join in the price run with them. This is achieved by understanding that the large banks are creating obvious levels to bring in the retail traders, and then take their stops. They have to create liquidity in the market for their orders.
Well there's nothing left to do but get into some live chart levels in my next post.
If this is your first time visiting my blog, please be sure to read my previous posts to bring yourself up to date. You can start here
Great post
Thank you kindly, M'am. I do hope the best is yet to come :)
Amazing
I do hope you found this info useful @stbrians. Do visit again as there is lots more to come :).
Good info. Thank you.
(By the way, i love windsurfing! )
You're welcome @amfy. I live by the sea but I'm not great on water, hehe. Thank you.
Awesome post, I do trade price action as well. An advanced method I use and I normally use minimum stops. We should connect tho
@vellzz it's always good to meet a fellow trader. I came to steemit to learn about the whole blockchain phenomenon and I have become totally hooked. I just love all the learning, but finding time to trade is an issue right now for me. One post just leads to another for me :).
Currently I'm just setting up some accounts to start dabbling in crypto and the whole process takes quite some time. I'm interested to see how crypto moves compare to forex. Everybody here seems to be only interested in crypto, so I need to explore that avenue for trading. I'm glad you stopped by and if you are aware of any reliable crypto brokers, I'd be interested to hear. Talk soon and thank you.
It so interesting to know this information, however I find it hard to understand to someone like me who has no knowledge in trading.
@puroypoi, you could make a start here How do you know when you are being fed fake information? and follow along with my posts, as I try to build understanding from the ground up. If there is anything in particular that confuses you in any of the posts, please do ask for help in the comments of each post. I just started this blog three weeks ago so you can easily catch up. In fact if you have any questions at all about starting in trading, just ask. Thank you.
Thank you for your kindness I will read the link you shared with me. Yes if I have questions I will post it.
👍
Forex traders I found interesting when visiting them in the corporate banking world. Finding your trading method, now having read three of your articles I wish you well, it is a craft learned to say the least @anmeitheal
@joanstewart just to clarify that the craft is in place from the forex markets. What I am doing now is preparing myself for the crypto markets. Moving from the established forex markets with their years of historical data, to the spanking new cryptos with all their speculation and obviously no history, is a huge change. I have to test if my forex trading method holds up in the new world of cryptos 👍. Thank you.