We need to
master a handful of trading strategies to master ourselves as a Price Action
Trader. As Bruce Lee said ‘I fear not
the man who has practiced 10,000 kicks once, but I fear the man who has
practiced one kick 10,000 times.’
As a price
action trader, you will come across many strategies by reading books or
watching video courses. I recommend you learn one of the best strategies that I
use personally and advise my fellow traders to follow the same as it gives best
result and easy to use and follow.
Enter a
trade near Price Magnets. i.e., At or nearby –
Previous
Day High, Low, Close
Previous
Week High, Low, Close
Previous
Month High, Low, Close
Below is
the Screenshot of the chart-
EURUSD- Timeframe: 1 Month
Line Drawn
on Previous Month High, color code Red (Line Width Highest, i.e., 4)
Line Drawn
on Previous Month Low, color code Green (Line Width Highest, i.e., 4)
Line Drawn
on Previous Month Close, color code Blue (Line Width Highest, i.e., 4)
Next Step- Shift to weekly timeframe
Line Drawn
on Previous Week High, color code Red (Line Width, i.e., 3)
Line Drawn
on Previous Week Low, color code Green (Line Width, i.e., 3)
Line Drawn
on Previous Week Close, color code Blue (Line Width, i.e., 3)
Shift to Daily Timeframe
If you use Tradingview to do analysis, you can use an indicator to draw Previous Day High, Low & Close Price. Go to indicator section and type- PriorDayOHLC. Choose this Indicator.
Use Settings as:
Use an Indicator named EMA 21 to know the average price of a script.
Choose setting as
Save the chart and your chart will look like this
You have
your important levels drawn on chart
Now, if you
enter in a trade in any script at these levels you will have a higher
probability of making money as these levels are price magnets and price retest
these levels for confirmation. Even if you go wrong, the market will give you a
chance to exit at breakeven. It is my experience in the last 8 years of active
trading.
You can mark these levels in any chart and you will find that price is retesting the level and making good moves. Examples-
You can do
the retest yourself. Happy Trading!!!
For any question,
Please contact www.tradiify.com
Thanks
you!!!
