Trading Price Action
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Price Action keeps trading simple
When you’ve got a chart filled with indicators , Fibonacci retracement levels drawn out everywhere, and pivot points all over the screen you may think you’re doing yourself a favour by taking on some ‘advanced analysis’, but all you’re doing is shooting yourself in the foot.
This type of complicated technical over analysing of the charts will burn out a trader’s stamina quickly, induce stress and eventually cause the trader to start making emotional mistakes. We all know as traders that there is no place for emotions in the trading profession, so the best thing to do is create an environment that is free of stress inducing factors.
This is where price action comes in.
When you’re working with just the candlestick chart you will actually start to see what is really going on in the market. It brings out the clarity and all of a sudden using simple analysis you are able to make more confident trading decision and lose less sleep at night.
We prefer the larger timeframes such as the daily timeframe, as we find them to be more reliable. There is more price action data within a daily candle than say a 15 min candle. This means the signals that form on the daily chart are more reliable and have a greater chance of working out than signals that form on the lower time-frames.Using higher time frames, you won’t have to be tied up in front of the charts for hours waiting for an intraday trade signal. Trading the daily charts is a nice relaxing way to make money from the markets, and you can even trade daily charts and keep your day job while you build up your trading capital.
You don’t need a degree in physics or be an economics master to trade with price action, that’s the beauty of it. Price action trading strategies can be learned by anyone.
Once you clean up those charts and make the switch to price action, you are never going to look back. You’ll wish you discovered price action trading a long time ago.
