The price action trading method is based on the Japanese candlestick pattern. After the introduction of the Japanese candlestick pattern, the concept of analyzing the market data changed to a great extent. The traders don’t have to place the trade using the key knowledge of support and resistance. Based on the different candlestick patterns, they can easily predict the direction of the major trend with extreme precession. In fact, you can also trade a 1-minute time frame using the reliable candlestick pattern.
You might be wondering if the price action strategy is the Holy Grail to become a successful trader. But things are not so easy when you take trading as your business. However, you can improve your life and secure financial freedom with the help of a price action trading method. Let’s explore some amazing steps which can help you to learn price action strategy.
Support and resistance level
Before you start placing the trade, you should have a clear idea about the support and resistance level. Support is such a critical place in the market that allows you to execute the trades in favor of the major trend. Based on the direction of the market and price movement, you should be placing your trade with confidence. To build up the confidence, you have to look for the reliable candlestick patterns at the key trading zone. Hundreds of candlestick patterns are available in most of the price action guides. Instead of memorizing all the patterns, you should learn the most important chart patterns. Once you become good at analyzing the market variable, you can expect to make some big changes in your life.
There are two types of support and resistance used by professionals. If you find the support and resistance level in the lower time frame, you are dealing with the minor levels of the market. On the contrary, if you start drawing the support and resistance level you are actually dealing with the major levels. Though Forex trading Australia is a very popular business, few traders actually make a consistent profit. Even after knowing about the key trading levels, you might not be able to make a decent profit due to the average class trading platform. So, find a broker like Rakuten who ensure a professional trading environment.
Learning to trade with candlestick
In order to trade the candlestick pattern, you should take help from the professional traders. The professional traders can show the guideline by which you can learn trading in a demo account. However, if you still think you can learn to trade with hard work, you are most welcome. Try to trade the market based on the reliable candlestick patterns so that you don’t have to lose too much money in any trade. Follow the safe path in trading so that you don’t have to become frustrated with losing orders.
The candlestick gives critical information regarding the opening and closing price of the candles. With the different formations of the candlestick, you can place some good trades and bring positive change to your trading method. But the learning should be done in the demo account so that you don’t have to lose a big portion of the trading capital. If you can follow the safe approach in trading, you can expect to make some big changes.
Analyzing the losing trades
You have to analyze the losing trades and make some big changes to your trading strategy. Without learning from losing trades, it will be nearly impossible to change your life. Being a naïve trader, you should never lose confidence at trading. Always remember, confidence makes a man stronger and allows them to overcome the biggest challenge in life. If a certain candlestick pattern fails to generate profit, you should not be placing the trades with the same pattern. Use the other reliable patterns and see if things change in trading.