Sunday, May 22, 2016

Intuition and Trading Price Action

The Forex trading market is incredibly complex. While some traders prefer using robots and software programs in order to buy or sell their currency pairs, others prefer making trades based on their own analyses or intuition. However, nobody broke the bank sitting at their computer waiting for a software program to give them a signal to buy or sell. No trader can also claim to have made a fortune having studied charts again and again and waiting for the perfect indicators to line up. Successful traders were quick to realize that while these indicators and mechanical Forex trading systems can complement a person’s trading strategy, your whole trading strategy cannot be based on such indicators.

Given the fact that there are so many guides that highlight the rigidity of such systems, it is funny to think that so many people still try to completely automate their Forex trading systems. The best traders in the world only use their brains and understanding of the market in order to generate a profit. They use their understanding of price action in order to figure out which currency pairs are likely to excel, and which need to be sold immediately.

In essence, successful traders only use their own intuition and experience. If you want to become a successful trader in the Forex market, the first thing that you will need is a deep understanding of the market. The first thing is to build up a trading strategy. If you want to make a profit in the forex market, you will need an effective trading strategy. The Price Action strategy is one of the most common strategies used by traders today. While it is certainly not the only strategy that can be used, the key difference lies in the manner of your trading.

Now, you will also need a degree of discretion and awareness while making trades. Many people often attribute successful trades to a gut feeling, a sort of sixth sense that gives them an idea about whether the market is going to go up or down. While this is not something that you can teach, you can learn how it works by spending more and more time studying the market.

As you continue to observe the market over an extended period of time, it won’t be long before certain indicators will become apparent for you. You will be able to realize how the market is fluctuating and moving and what direction it will go to next. There’s just no way that a mechanical or automated Forex trading approach is going to work. Here are a few things that you should know about building a simplified Forex trading strategy:

    The chart should show a clear trend upwards over the past two weeks.
    The market pulls back to a support point.

The market ends up forming a price action signal, which confirms the reversal of the upward trend. This will then become the entry point for your trading in the market.

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 M Samer Al Reifae
Official HiWayFX Representative in Romania
+40 734 277 757

 Do your own due diligence. 
No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend.