| Price Action Forex Trading: Best Way To Learn |
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| Written by Edward Lomax |
| Thursday, 17 June 2010 17:48 |
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If you have been learning about trading the currency markets for any time, I'm sure you've heard the phrase, "Price action is king". This is because price action trading is one of the most accurate and respected ways to trade Forex. And of all the traders I've studied, the most successful ones all use some form of price action in their trading (even if they use an indicator or two as well).
If you have been learning about trading the currency markets for any time, I'm sure you've heard the phrase, "Price action is king". This is because price action trading is one of the most accurate and respected ways to trade Forex. And of all the traders I've studied, the most successful ones all use some form of price action in their trading (even if they use an indicator or two as well). What exactly is price action Forex trading? Basically, price action is the movement of price on your charts over a certain time period. In the simplest form, traders look for price patterns that repeat time and again, giving them a strong insight into what might happen in the future. A more advanced way to look at it is price movement is a "reading" of the state of mind of the big traders moving the market, which give traders an insight into which direction the market will move in. The easiest way to learn price based Forex trading? You could look at the charts and try to discover these price patterns and try to analyze the movement of price for clues as the the big traders intentions, but I fear this will be a very long road. As with any other skill worth learning, the easiest way to learn is to "stand on the shoulders of giants". You need to find an already successful Forex trader willing to teach you their methods and learn their tested Forex trading systems. Is books, videos or webinars the best way to learn price movement trading? If you are lucky enough to find a successful Forex trader willing to teach you, it is important to make sure the teaching method suits your personality. The truth is, we all learn better from different formats. Some like books, others webinars and still others through video. I personally like video training best because I can watch it as many times as I need and you can see how the trading methods work under live market conditions. It is very important to learn the trading systems in a way that allows you to apply them accurately once you attempt them on your own, and that is why video is a great way to learn. Whatever method you decide to learn price action Forex, the effort is worth the time it takes to learn. When you understand price movement, and the underlying emotions of the traders in the market, you gain an advantage over other traders and make better and more accurate trading decisions. And when trading Forex, having an edge can mean the difference between being a very successful trader and losing money. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Price action is the best way to trade Forex. To be taught a primarily price action trading system by a successful Forex trader for free, look to: 3SMA Forex System |