Price Action Trading Strategy Guide | Have you ever thought what if with Forex Signals and Price Action Trading Strategy?
“How can I trade with a naked chart, without squiggly lines, without indicators, and without a mess?”
Well if you ask me, there’s one way to go about it…
Price action trading strategy.
Price action trading| How to make money in forex (price action or p.a.), is the art and skill of trading based on raw price data with no third-party indicators, news or fundamental data. The cliché expression to describe price action trading is “naked trading”, because it involves trading on a ‘naked’ price chart, i.e., a chart devoid of any indicators or other technical analysis tools, besides the raw price data or price action of a market.
Price Action Trading — Support & Resistance are the best levels to trade
Here are 4 things you must know:
- Support and Resistance
- Previous Support turns into Resistance Level
- Dynamic Support and Resistance
- Trending & Re-tracement move
Let’s start with Price Action Trading Strategy Guide
Support & Resistance
Support – An area on the Forex signal chart, with potential buying pressure, to push the price higher.
Resistance – An area on the forex chart, with potential selling pressure, to push price lower.
Here is an example…
Support and Resistance on EUR/USD
Support on USD/CAD chart of a forex signal by FxPremiere
Resistance on GBP JPY chart
Direct Forex Signals are very important to use when trading
If price breaks below support, previous support becomes resistance.
What if price breaks above resistance, previous resistance becomes support level
Here’s the example
Previous Support turns Resistance on GBP AUD