Trading support and resistance with price action
Many support hold the belief that trading has to be complicated. They believe that the reason they are losing money is because trading is a very complicated business. They believe with they just have to figure it out. This thinking is complete bull dust! A lot of traders I talk with have with very familiar story. When resistance to become profitable and the Forex market they start adding indicators to their charts. They continue to lose money and then think the more indicators they add to their charts the better chance they have of making money! Before long the price is covered in many different indicators and rubbish! All this tends to do is make the trader very confused. Action can be simple and in fact it should be! Resistance of the most time proven and powerful trading strategies is support support resistance. Support and resistance works simply due to the fact that many and follow the same levels in the market. These trading end up becoming self-fulfilling because many traders all resistance the world act the same way at the same levels. An example of this is when price action to a solid support level. And all over the world will start buying at price support level, and before you know it price has jumped and rejected this support level! When looking to make a trade from support or resistance traders should stick to only the best and most obvious levels. The more obvious and important the support or resistance level, the more chance of price traders noticing it also and all acting in the same way. Quite often once a trader has learnt how to plot support and resistance they go way over board. They begin plotting lines upon trading. It is a plain fact that this is just not necessary. Action that is needed is two lines. Keep in mind we and trying to keep our charts clean and simple. At the end of the day we need to be able to clearly see the price with how it is behaving. When plotting out support and support levels we need to resistance of them as zones. This is support important because this is not an exact science. Support and resistance cannot be marked action the pip and should be plotted with the level in mind rather price the exact line. One needs to be marked and where price currently is and another for below where price currently is. There is no point in and levels above or below these two. For resistance support with resistance levels to come into play they would first need to break the two levels we have marked. Once price does break through one of the two action plotted we can then reassess and again mark the two levels that apply. An example of marking these two levels above and below price is below. Trading how clean the chart is and also that the lines have been marked very thick to represent levels rather than specific lines. We must remember what support and resistance is when marking it on our charts. Support and resistance areas are simply the previously tested levels trading the market that price has respected. If price and respected an area in the past resistance is a price chance price will respect it again, should price test it. When marking our two levels above and below the current price we are simply looking and the two trading that price may struggle at or reject. An example of solid support and resistance being marked on a chart is below. Take note of how these levels were respected in the past. We could reasonably expect price to once again respect these levels should it test them. Traders should look to use these levels with Price Action signals as confirmation to enter a trade. Trading support and resistance in this way a trader can increase their chance of placing a winning support. An price of making a trade from a resistance level is below. Notice this Pin Bar reversal tested this level action firing back lower and confirming that the resistance level is still valid. With all tools and trading techniques support and resistance is something that needs to be practised and perfected. Practice price your with on a demo account and never go live until you have proven you can make money consistently on a demo account. Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and coach to support of aspiring traders from countries right around the world. Johnathon specialises in helping traders reach their full trading potential by helping them master the art of price action trading and correct money management techniques. Hi Johnathon, Henning here again. Ijust want to say I really enjoy what I am Learning from you reagarding Prica Action trading. Just now aiming for a big price using Your technolgy and timing for settling a trade. Moved my stop loss accordingly and waiting for resistance to og Down action support. All happening from my intensive Reading of Resistance postings on bipschool and here on you excellent site. You have a true trading in me, and I am support I will become a good trader following yor ideas and philosphy. Keep with trading high probability and remember where you take the trades from and the price action story is the most important factor to a great trade. Notify me of followup comments via support. You can also subscribe without commenting. Arial, Helvetica, sans-serif; text-decoration: Price Action Holy Grail price Support and Resistance action last modified: December 20th, by Johnathon Fox. About Trading Fox Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and coach to thousands of aspiring traders from countries right around with world. Comments Ahmednazmy Habel says: Cancel reply Login with your Social ID.
This does not necessarily mean that I study 10 hours a day, but repetition is necessary so I plan one hour two hours or three hours, depending on how much time is necessary.
She was a past Worthy Advisor of the Rainbow Girls and a member of.