Learning Forex based on the basic principles of Price Action is not something that can fade over time or become irrelevant just because it is used so widely. Let’s take a look at the following 10 reasons to understand why Price Action is your choice.
1. Price Action analysis gives traders the most authentic view of the market
Learning Forex based on the basic principles of Price Action is not something that can fade over time or become irrelevant just because it is used so widely. One of the best reasons to start using Price Action as your main trading method is, Price Action analysis will help you feel the volatility of the forex market; It allows you to put price data into a context that makes everything logical. Traders often get stuck in using indicators to analyze price movements; It makes no sense to stare at an indicator to analyze market volatility when there are repeated price action setups that can give you a better prediction.
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2. Price Action analysis is a proven strategy over time
Learning Forex and trading based on the Price Action setup that has been used by professional traders for decades. When you learn to use Price Action to trade, you can rest assured that your method is appropriate, because it teaches you to decipher the main way of trading in any market and price fluctuations. A lot of traders are stuck because they use different combinations of outdated indicators, these methods have not been used by traders for a long time, because it is ineffective to adapt to. These conditions change in the market. Price Action analysis is always relevant and flexible enough to guide you into the market under any circumstances.
3. Price Action analysis works very well in the trending market and the range-bound market.
A great thing about Price Action analysis is that it provides relevant signals and can generate profits from both the trending and range-bound markets. Many trading methods work well in the trending market but not in the market in range or vice versa. Price Action is an exceptionally flexible and flexible trading method, which will provide signals to consistently generate profit in any market.
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4. Price Action setup is easy to test on the demo account
Price Action is often held in the forex market and is very simple to spot once you are trained to know exactly what to look for. You don’t have to sit there, try to analyze three different indicators that show you what to do. Simply wait for your desired price pattern to form, and then follow your strategy. You can open a free Forex demo account to practice Price Action tactics anytime before using it on your real account.
5. Price Action analyzes all variables in the market
Price action analysis through Price Action is truly the only way you can build your trading plan. Often traders are stuck trying to trade with basic news combined with their overly complex indicators. The beauty of the Price Action strategy is that it will let you recognize when there is new news, namely the trader’s reaction to that news. Prices will often go against what people expect based on certain news. If you know how to analyze Price Action, you can be alerted to the most probable moves of the market even before the news appears. Price Action simplifies your thinking by taking into account all market variables and giving you the easiest way to understand them.
6. The entry point is clear
Once you have learned some solid Price Action setups, you will know exactly what you are looking for in the market before engaging in a trade. You will not need to guess as you have to do with other methods whether your setup is there or not. Many methods of learning Forex have “blind spots” that make traders wonder if they should participate or not. This often results in too much or too little trading, blowing away their trading accounts and causing them to miss opportunities. When you learn Forex by trading using Price Action tactics, you will be able to see the market for the first time most clearly, there will be no more vague methods to make you feel confused.
7. Allows the use of higher effective time frames
Another great thing about learning Forex with Price Action is that it gets stronger and firmer when you trade with higher time frames. This allows you to trade less, but with greater accuracy. Sitting in front of your computer screen for hours just to watch a 5-minute chart can drive you crazy and actually hurt your trading account. A lot of traders are bound to the idea that they will gain an advantage if they trade more and with a lower time frame. All of this ends up costing you valuable time and money for family and friends. Once you know how to use Price Action effectively, you can trade completely with daily charts and spend 30 minutes a day analyzing the Forex market. Once you have a good orientation along with a profit-making trading plan built around Price Action, spending time staring at charts and low time frames just makes you tired
The reason why so many people trade is because they don’t want to spend most of their time at work they don’t like. Many of these people forget that one of the great things about trading is that you don’t need to spend too much time analyzing the market, just enough to highlight your strategy. you, then leave and let it work on its own.
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8. Price Action trading is the most familiar thing that traders on the exchange use
We have seen screaming images of pit traders on exchanges in Chicago or New York. Do you think they are using outdated instructions to make decisions? Thinking of outdated instructions in that situation really makes it funny to use them for trading. Pit traders read the tapes, that is, track real data for any market they are trading and analyze their movements. Price Action analysis is the same method as reading most videos. The reason why pit traders analyze price movements by reading the tapes is because this is the market’s core information, just like Price Action analysis. It is ridiculous that so many people fall into the trap of outdated instructions and try to predict the outcome of market movements from the Forex news being released.
9. Price Action analysis helps you maintain an objective thinking in the market
When you know exactly what you are looking for before you enter a trade, you will not be confused or frustrated. You will just have to wait, stay calm and monitor the market according to your trading schedule to see if your strategy is present. By not being stuck trying to decide whether your method will give you a solid signal, you will remain calm, collected and given yourself the opportunity to make a profit. tallest. Like lions in the green forest, traders who learn Forex according to Price Action will wait until the most perfect price setup is formed, then they will rush in, grab their prey.
>> Read more: THE MOST BASIC PRICE ACTION PATTERNS
10. Price Action analysis helps you achieve the discipline you need to excel at Forex trading
Discipline is probably the most important factor if you want to succeed in long-term trading. When you have an effective and flexible method, you can focus more psychologically to manage your emotions when trading. Managing emotions and discipline with yourself are undoubtedly the most essential factors to distinguish between an amateur and a professional trader. A lot of traders get stuck in manipulating their methods or are so absorbed in searching for the “holy grail” that they forget the most important factor for successful trading right in the middle of their ears. The way you react to a winning or losing trade is far more important than the trading method you are using. The best thing about Price Action analysis is that it allows you to focus on yourself, regardless of whether your method is effective or not.
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