Price Ekshens forex trading strategy
Price Action is very popular among traders today, as it allows to receive trade signals without using any additional tools of technical analysis (the only thing to pay attention to is levels).
In fact, it is another alternative method, or rather a set of tools by which Forex traders can receive sufficiently accurate trading signals, and without delay. The most important thing is to learn to determine future market changes in a competent manner. That 's what Price Action 's strategy teaches you.
Description of strategy
In this article, we will look at one of the options for applying Price Action tactics in forex trading. This is the famous pin bar that can be found quite often on Forex 's chart and thanks to which many traders earn without using any additional indicators.
The essence of this system is to find a bar with a very long shadow. This is the starting point for further analysis.
When such a bar is found, pay attention to the model on the left. Her shadow should not go beyond the shadow of a pin bar. Note the screenshot, this is the situation. Next, you have to wait for confirmation from the bar on the right. Its shadow should also not go beyond the pinbar maximum. If these conditions are met, a signal appears.
The pin bar is a truly unique model. It received its name from the hero of the children 's fairy tale about Buratino (in the original - Pinocchio). This model is compared to the main character 's nose, which was very long and continued to grow when Buratino lied.
The longer the pin bar shadow, the more likely the trend line is to head in the opposite direction. The most important thing is that in the process of model formation the basic conditions are met (that is, shadows of two bars located on the right and on the left do not go beyond the pin bar upwards).
Rules of an entrance
Once the signal described above appears, the trader can open a deal for sale. In principle, based on our example, it can be seen that in the future, the price goes down enough, as confirmation of the pattern price action pin bar. Therefore, the main condition of profitable trade with this model is patience.
The Price Action forex trading strategy figure works at both the top of the uptrend and downtrend lows. There can form the same model, but only with shadow down. In this case, all the same conditions are met, only mirrored. That is, the shadows of the right and left bars should not go beyond the lows of the signal pin bar.
Today there are many models on Price Action strategy. Among them, the pin bar is the simplest and most reliable. In any case, in order to succeed in trading according to this method, we recommend to study other patterns and strategies, which are published in our Academy, for example, the forex trading strategy Sniper Pavel Dmitry. This system is quite a good alternative to other technical analysis tools.