Trading with Price Action - Practice reading chart in 5 minutes - Part 3 - Singapore Forex Trading, Singapore Forex Academy, Singapore Forex Association

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Trading with Price Action - Practice reading chart in 5 minutes - Part 3

Forex Trader Hello!
The prior period has posted 2 topic:
Today we are going to practice the theory part was learning, if only to absorb the shape pattern that does not apply in practice, do not make any sense at all, should apply the knowledge learned to practice often throughout the long period to proficiency.

1. The new trend has started

Artwork below is the chart the pair EURUSD H1, I prefer to use H1 Chart for tracking the market in the short term (in-session transactions), in other words I was heading Trader Day Trading, search the trading opportunities of the day. Open MT4 chart up, the first thing is observed as a whole to know the trend, the next step is interstitial trendline, the trend line to see more clearly the current position of price increases still see potential or not.
EURUSD posted on trend tang
Downtrend has ended and started a new bull market, identification by interstitial Trendline resistance connecting points, the current time prices rose beyond 1.2 Resistence by candles increased significantly, now terrain consolidation to continue higher .., expected this opportunity might "eat" at least 200 pips easily. The third step is to identify the block, who Fibonacci for the segment increased the most intrepid , forward it back to about 50%, in order to buy in, closing the current hole bottom around 1.3130 (60 pips stop loss). Goals Word: Hole 200 vs 60, greater than 3: 1, so very reasonable, worth to join the deal.

2. Head & Shoulder pattern

Below is a chart of Spot Gold on the market ( gold accounts )
Time of posting has left shoulder and head and is egg forming the right shoulder. Show this agreement shall continue to observe more time tracking, can decide. If torturing him immediately sell it risky because the theoretical models when trade with shoulder - head - shoulder to shoulder, it should wait for completion of the new short follow.
gold head and shoulders
The head and shoulders pattern was introduced in the previous post, how to identify the queue with the left shoulder & head, right shoulder will increase equivalent altitude left shoulder and began to plummet through the neckline neck line (or often called ... broken neck), the starting sell opportunities. Take profit profit target by a distance of Head height (measured from the neck to the top of the head).
Sale price action pattern head and shoulder - head and shoulder
Prices fell through the neck (Neck Line) and falling sharply, profit objective positioned below the neckline and equal length segments Stock - Peak head. This time you can profit 1/2, for example: In order to sell 1 lot, the profit of 0.5 lots and the rest will be moved into place Stoploss point in order to slide down the scale eaten profit Figure Shoulder-Head-Shoulder.
3. Trading Breakout (Fight the obstacles) with parallel channel model
According to the price as the name of a pattern, it's a trend channel consists of 2 parallel trendline together in one direction. This model is quite "nice" because it is easy to recognize and predict when to enter commands.
mo hinh breakout channel Photo above taken a price chart is moving in DOWN channel model, you can use the drawing tools available in the software channels or manually Metatrader interstitial 2 Trendline border above and below to form a CHANNEL.
ket qua giao dich mo hinh breakout Trading opportunities when the official price break discount channel, note that should really have two candles outside the channel then, be patient when waiting for a clear signal realistic, because there are many possibilities candles rose channel light candles and shut the door again, "regressed" back channel model will look like unfinished. There are two points to note when analyzing the model's Channel:
  1. When the channels Breakout price trends forming
  2. When channel but price volatility in the forward direction shall break one afternoon strong trend, for example with the image on the Channel DOWN, if we continue to reduce variable Trendline break under the intense price cuts occur .
Conclusion: Through this article 3 period, you are under the Trader Price Action to better understand the most basic step to reading charts quickly, within a few minutes to see if by any chance, "good" or not . If not, just stand outside because there's nothing to do. Patiently waiting for opportunity in principle is always a wise choice to minimize risk and more confident, job forex trading becomes light , no pressure, see also topic of forex trading method NO PRESSURE (No Stress). You need to constantly train new look soon see an opportunity, no tool other than own strength, do not rely on these tools Indicator indicator.
There are many trading strategy Trading Strategy to choose from, you can totally follow the principle of combining the Indicator to form a complete system , the most important is the consistency, if a system is too complex, enclosed all sorts of conditions, do not swing, when in fact you command very distracted and distracted by the individual indi give mixed signals, experienced many different system but eventually stops Back to Pure Naked trading (trading with simple pricing model and candles Japanese) Indicator does not strange, if so, just refer to the intraday as Pivot and prevented from moving avarage to know the important points to prevent surf during the day using the resistance level for the profit & loss cut.