There are many different ways of trading the financial instrument in the world but no signal system strategy can guarantee you 100 percent profit in the market. If you trade the live assets then it’s very obvious that you will have some losing orders in the market. Most of the novice traders in the financial industry fail to make money in trading since they consider for trading as get rich quick scheme. But if you truly want to make money via trading then it’s highly imperative that you consider it as a business. Though there are many different ways of trading the financial assets in the market but price action trading strategy tends to be the most reliable one. In this article, we will discuss how we can learn the art of price action trading strategy perfectly.
Develop a strong basic: Developing strong basic in the financial sector is the most important thing that the novice trader should do. If you look at the professional traders in the CFD trading community than you will notice that every single one of them have a very strong basis in the financial sector. They know very precisely that in order to make consistent profit in the financial market it is highly imperative to have a clear understand about the financial market. Unlike the novice traders, they always trade with rational logic and they never execute nay trades in the market with emotion. If you want to become a professional price action trader then it is extremely important that you know how to do the major three types of analysis in the market before making any trade with price action confirmation signal in the market.
Learn the candlestick pattern: Price action trading strategy is based on the different formation of the candlestick pattern. The professional price action traders trade the highly reliable candlestick pattern in the key support and resistance level in the market and make a decent profit. If you are relatively new in LINK REMOVED then it will be a little bit difficult for you to learn all the candlestick pattern but if you have the strong passion for becoming a professional trader then you will see that it's not that tough. In the very beginning, you can only learn the highly reliable candlestick pattern since each price action confirmation signal in the market exhibit different reversal and continuation signal. So make sure that you know the reliable candlestick pattern in the market.
Support and resistance level: All the professional traders trade the key support and resistance level in the market and make a decent profit in trading. Unlike them novice traders they always use the higher time frame in the market since it gives them much more accurate support and resistance level. As for price action trader, you must know how to draw the perfect support and resistance level in the market since a faulty support and resistance level will lead you to poor trade execution. When you draw a support and resistance level in the market make sure you have a minimum of three lows or highs in the market and never force join the support and resistance level in CFD trading.
Multiple time frame analysis: You can also do the multiple time frame analysis in order to find the best possible support and resistance level in the market. It’s true that doing multiple time frame analysis is a little bit difficult but it's highly imperative that you learn the art of multiple time frame analysis since it will filter lots of false signals in the market. And always give emphasis on the higher time frame signal when doing the multiple time frame analysis.