403 ERROR Forex trading strategy request could not be satisfied. Most new traders think that the more complex a strategy is, the more profitable it will be.
Trading Forex using price action is simple, stress free, and highly effective. In this guide I will share my simple Forex trading strategy with you. While my Forex Trading Strategy is simple, do not let that simplicity fool you, it is very powerful strategy! My Forex trading strategy is based completely on price action, no indicators, no confusing techniques, just pure price action!
When GBPUSD moves up it’s because there are more bulls than bears and vice versa. Price action trading is about analysing who currently controls price, bulls or bears and if they are likely to stay in control. How do you analyse who’s in control of price? By using two simple price action techniques. Once price hits these areas you know it is likely to stall or reverse completely.
This allows you to buy or sell at the right time. Advanced candlestick analysis goes much deeper than that so that you have a full understanding of what a chart is telling you. These two techniques make up the core of my price action trading strategy. In fact, those are the only techniques I use to find and trade high probability setups.
It’s simply about reading price and making smart trading decisions. It has survived major market changes from the financial crisis in 2008 to the Swiss Franc disaster in 2014, to Brexit in 2016. It really has seen it all. My price action strategy works in all market conditions. From trending markets to low volatility, to ranging, to high volatility, it has weathered it all with consistent profits. Indicator based strategies work well in specific market conditions.
If you have a strategy that works in low volatility markets, it will fail in high volatility, ranging, or trending market conditions. Price action doesn’t only adapt to changing market conditions though, it adapts to different pairs, different time frames and, crucially, to different traders. Above all, Price Action keeps your trading simple. In fact, my Forex trading strategy is so simple that you can trade it from your smartphone.
The most common downfall of today’s traders is over complicating their strategy. We have all seen charts that look like this. How can you trade comfortably using a chart like this? How can you trade efficiently using a chart like this?
How can you trade from your smartphone using a chart like this? You can’t, it is too messy. The core rule of my price action strategy is to keep trading simple. Because the Forex trading strategies that work best are simple. The only thing I place on my charts is support and resistance areas. I use these support and resistance areas in conjunction with candlestick analysis to trade Forex.
So what does a clean Forex chart look like? Much better than the monstrosity above! This chart is uncluttered, easy to understand and to navigate, with nothing to distract you from analysing price action. This style of trading is quick, efficient, stress-free, and you can do it from anywhere, including your smartphone.
So if you want a simple Forex strategy, keep reading. Support and resistance areas show you where to buy and sell, they are a vital part of every traders toolkit, and it is essential that you learn how to place them. Placing support and resistance areas is the most important skill you can master in trading. Support and resistance areas divide your chart up into buy and sell areas. An area that sits above current price is a sell area, any area below current price is a buy area. Buy Area The terms buyers and bulls are interchangeable.
Support is a buy area as buyers are found at support. Sell Area The terms sellers and bears are interchangeable. Resistance is a sell area as sellers are found at resistance. On the GBPUSD chart below, you can see price is approaching the blue shaded area at 1. When price approaches a sell area large amounts of sell orders are triggered countering buy orders. This usually results in price stalling or even turning around completely for a reversal.