Jun 11, 2015 - cuttoheal. Better books to read: Al Brooks, 'Trading Price Action' in 3 versions, namely, 'Trends', 'Ranges' and 'Reversals'. The book is Attacking Currency Trends by Greg Michalowski. Vess follow-on to your post the attached table of contents PDF is insightful. Time Compression Trading.
Read the article in German: —————— Price action is among the most popular trading concepts. A trader who knows how to use price action the right way can often improve his performance and his way of looking at charts significantly. However, there are still a lot of misunderstandings and half-truths circulating that confuse traders and set them up for failure. In this article, we explore the 8 most important price action secrets and share the best price action tips. #1 Support and resistance zones are better than levels Support and resistance is probably the most popular price action concept, but only very few traders can actually make money with it. The reason is often very simple, although it’s not as obvious at first glance.
Most traders just use single, horizontal levels when it comes to trading support and resistance which look great in hindsight but fail during live trading. The reason is that singles lines are no effective way of looking at price movements. Is much more effective when it comes to understanding price. The screenshot below shows that the trader who just uses a single line either misses trading opportunities when the price does not reach his lines. Or he gets thrown out during volatility spikes; the trader who uses zones instead can filter out the noise that exists in the zones. I hope that this concept doesn’t have to stay one of the price action secrets much longer and more traders will start using this technique.
#2 Highs and lows – one of my favorite price action secrets This point describes a very basic concept, but it’s SO important to understand and not used widely enough. I strongly believe that once a trader knows how to analyze highs and lows correctly, he has a much better chance of trading profitably. The analysis of highs and lows offers so much information about trend strength, and can even foreshadow the end of trends and trade price reversals in advance.
Here are a few things that will help you understand highs and lows beyond the general trading knowledge: • Do you see long trend waves with small pullbacks only? (this signals a strong trend) • Is price barely making higher highs/lower lows? (this could indicate fading momentum) • Do you see increasing volatility – larger candle wicks – while price makes new highs/lows? (you’ve probably heard the quote that volatility is greatest at turning points) • An uptrend where price fails to make a higher high should get your attention I challenge you: take a look at any “textbook” chart pattern out there and you’ll see that the only thing that really matters is how highs and lows form within that pattern. Lord of vermillion psp download free. For example, the powerful Head and Shoulders is defined by a sequence of highs and lows. In, we take this to the next level.
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