A trading system can also be know as an edge. An edge allows us to trade without fear and uncertainty because it has a higher probability of a decision taken actually happening over the other but within a series of trades. The question now is what happens when you have found your edge like price action trading and you still unable to profit from trading? This article hopefully will give you some insight in how to fine tune your edge.
A picture paints a thousands words, and that's how we should view our charts where each candle describes what's currently happening with price as well as it's history. Candles are always born neutral, after birth they can grow to become either bearish or bullish.
Now that we know how to read a candlestick patterns correctly, we can now apply one of the strongest reversal signals for price action and that's the Pin Bar. In this article I will discuss how to identify the perfect Pin Bar and where best to find this pattern.
Article discussing candle stick patterns namely pin bars
The term "Trade with the trend" or " The Trend is your friend" is often used in the world of trading but many people struggle to identify trend direction. The reason that people struggle to identify trend direction is due to the fact that financial instruments don't move in a straight line and the trend may be different depending on which time frame you viewing price.
This article is a continuation from the original Price Action with Dynamic Support and Resistance.
Key event areas are also know as support and resistance levels and are marked by horizontal lines drawn across bar highs and bar lows or near the same level. The other category is the dynamic or moving support and resistance levels which are marked by moving averages.
Bare bones trading is the simplest way to trade in the Forex market. So what is bare bones in Forex trading? I believe all that's needed is a Daily chart with price action and no indicators. The question now is how do I identify a valid trade setup with entry and exit points? This is where Horizontal or Key levels come in, which is the“core” component of my trading strategy.
A set of videos by Mark Douglas where he describes that trading is not about being right or wrong but we should rather learn to think in probabilities.
The main function of money management is to help me manage my emotions. It seems that I need to take a logical approach in my decision making knowing that every trade setup taken there is a calculated risk. By doing that I have now taken an unknown variable and replaced it with some certainty, which can help me remove the emotional side to trading.
Trading psychology is a huge aspect of successful trading and determines whether or not you will be able to make consistent profits as a trader. The two areas that need to be developed and enhanced is your patience and discipline.