In forex trading market, there are several tools and strategies available but out of all of them, price action forex trading is one of the most effective and useful strategies. In this post, the traders will go through 8 reasons to know that why they should at least consider trade forex with price action as an essential part of their trading tool kit.
In price action trading strategy, data offer most closely representative to real-time trading
Pit (price action) traders are often some steps ahead of other traders as they have direct access to the market data. Whenever a trader is trading forex with price action, then he/she is accessing the first-hand information about market.
In price action trading strategy, candlesticks do not repaint
It is evident that most of the indicators are infamous because of their re-painting aspect and it is more in the case of rapid changes in price. Candlesticks once completed can become a cast in stone, and there are events in time that cannot be altered. The price action patterns might not be easily read or translatable into trade signals, but the trader can be sure that a candle once completed on the chart will not change the shape.
It allows the trader to focus on the number one indicator, and it is- Price
Most of the indicator based systems include so many details, and the traders are also required to check so many variables. But the trader who trades with price action analysis in forex trains himself to focus on really what matters and it is nothing apart from Price and its behavioral changes.
The signals of price action work in any given market conditions
One of the major drawbacks of custom indicators and automated systems is that they optimally function when a particular market condition is dominant and in that case the trend may be flat or strong. It is worth to mention that most of the price action signals excel in any given markets situation, whether they are flat or ranging.
More information can be obtained on this through forex range trading with price action pdf.
Price action analyses create valid signals prior to conventional indicators
Price action signal empowers the traders to identify the beginnings, continuation, and cessation of trends. In fact, they never lag.
Price action signals are more rational, clear to decipher and easily understandable
Forex with price action offers a reasonable explanation to the chaotic and uninterruptible movement of price on the charts.
It also helps the traders to develop trade discipline as they are unambiguous and easily identifiable
Once a trader has decided on an specific candle pattern to monitor, then the trader is not required to spend a whole lot of hours to tweak the trading system. It is also evident that with the help of excellent money management and risk/reward targets, the traders would be able to focus more on improving their objectivity in trading with forex market.
Price action is compatible with all the currency pairs
The more traders’ trade forex with price action, the easier the traders will be able to recognize repeating patterns.