How to Entry With Price Action
Trading tricks with price action is one of the most popular methods and is often used by traders, this is because it is easy and accurate to predict market price movements.
The bar formation in price action is able to reflect the current conditions that are formed from the sentiments of market participants. These formations are analyzed by market participants to get initial clues or signals for the direction of the next price movement. Here's how to enter with price action:
Breakout
A breakout in forex trading occurs when the price breaks at important levels, which is indicated by a large movement after that. No wonder many breakout trading techniques are widely used by professional traders to find the best entry momentum.
Price action is closely related to the breakout strategy because it reflects the psychology of the sentiment of market participants. Generally, the price will test an important level such as a support or resistance zone, if a break occurs it indicates a breakout has occurred.
Momentum
Momentum is the strength of a trend. A trader should not only know about the direction of the trend, but also have to determine how strong the momentum or strength of the trend is.
When the trader currently sees the condition of the trend being up (uptrend), do not rush to decide to buy. Because, it could be a while later the trend reversed down, causing a loss. If the trader already opens a sell position at the lowest price or buy at the highest price, the trader's loss will be very large. That's why, understanding momentum is very important to predict whether the trend is still strong or if it is weakening and will reverse.
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