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Old 03-07-2011, 03:59
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flover flover is offline
Level III Lasers Member
Join Date: Oct 2009
Location: Iran
Posts: 51
Default Forex Price Action Trading

Hi all and welcome back
During these past months I was busy shifting my focus from trading systems with lots of indicators to learning to read the price action and market behavior and how to enter trades solely based on this factor and concepts like support/resistance, trend lines , etc... The attached file is a word document containing the whole posts of one of the guys in other forums describing the concepts of price action in detail and how to use it to enter two type of trades:
1- Break out trades 2- Continuation ones
Although the concepts seems very interesting and accurate ways to enter the market with pre-determined risk:reward ratio, I have found this kind of approach too discretionary in terms of identifying the correct setups and accurate entry points.... If you try these methods in short time frames (like I did in 5M) you will see there will be plenty of situations when your entry is just a fake market whipsaw and your stops (Although nearly small amounts of pips) will be taken more than often compared to your targets... in other hand when you use it on higher time frames you literally allow yourself to be subjected to higher risks than rewards (considering a conservative approach to trading). So I have decided to share these info with you and ask your opinion about trading the price action alone or perhaps with a selected few of indicators and maybe together we can develop a reliable method to interpret price action and those of us with more experience can hopefully help us learn and master these techniques through examples of their own approach to price action... I hope this new thread will be a huge success both for us newbies to learn and for experienced members to share their valuable insights with us towards the financial freedom....:)
PS: waiting for your ideas and comments... I have also forgot about the size limit of files here in this forum so I have included a link to this file .... ;)
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