A foreign exchange price action transaction can be defined as a trading decision based on a chart price model created by a trader reacting to both news and world events. Then, the price action transaction is a study of human emotions, which is expressed in the foreign exchange price chart and presented to the trader in the form of a price pattern that is repeated over and over in all time ranges and in all currency pairs.
Before discussing in detail why using price trading is the way you should trade forex, I want to discuss technical indicators. Forex traders must understand that technical indicators are derived from the price itself and therefore lag behind price movements. This means that if you are a technology trader who uses a completely metric-based strategy, then unfortunately you are likely to fail in the process of making money in the trading market. It's worth noting that when you use the indicator to trade, you enter the market too late and it is too late to close the transaction.
When you derive technical indicators from prices, it usually eliminates some of the troughs and peaks of the price itself, but more importantly, you will create an inherent delay in the indicator compared to the price, which is understood and presented to me. The point of view is crucial above – the technical indicators lag, which will cost you money.
If you use an Internet search engine, you'll find plenty of metric-based systems, whether it's selling or renting, and a lot of merchandise, trading robots and other reliable firepower systems that tell you how to use metric-based systems to make money. It's all good, but can these methods and systems really make money?
If we accept more than 90% of traders' final loss trading or clearing accounts for foreign exchange trading, and if we accept most people using an indicator-based approach to market trading, then I think this can tell us some information about the indicator based on the system itself. .
At best, the indicator system can help you break even in the market, and the price behavior method can help you get rich profits.
Then, the study of price is an observation of the trader's activity in the market, which can be seen and portrayed in the market through the price action model. These patterns express the emotions of the trader.
In my next article, I will delve into the price and start discussing and explaining the various types of price behavior trading methods I'm studying on a daily basis. The effective way to move up the foreign exchange market is easy to see on the chart in real-time trading.