If you are looking at day trading strategies, then it's very important that you start learning about price action. Sadly, most day traders don't consider price action. They much prefer to use indicators that give off trading signals.
Day traders should begin to understand the drawbacks that these indicators have, I know the convenience factor is something that appeals to most traders, but its not worth all the negatives.
For example, I know that trading the crossovers on moving averages would be very appealing to somebody who is struggling with their trading. After all, the only thing you have to pay attention to is whenever these lines cross each other. This should be your first clue as to what is wrong with using this kind of day trading strategy.
You don't even have to pay attention to the price. This is the most important part of technical trading, and instead you are looking at a couple of moving average lines waiting for them to cross each other. What does this have to do with anything?
I understand the alternative of learning price action may seem very daunting, if you have no experience with it. But isn't that the case with anything? Doesn't it all seem complicated when you are first starting out? It's really no different when it comes to the forex trading strategy of price action.
It's all about training your eyes to see something that you are not used to seeing: The actual energy of the market. Don't worry it sounds a lot more scientific than it actually is. Before you know it, you'll be seeing price action patterns in your sleep.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.
No comments:
Post a Comment