The Best Way To Learn Price Action Forex
"Price action is king" is probably a phrase I'm sure you've heard a lot. Of all the ways to trade Forex, price based trading gets the most respect. And of all the traders I've studied, the most successful ones all use some form of price action in their trading (even if they use an indicator or two as well).
What exactly is price action Forex trading?
Basically, price action is the movement of price on your charts over a certain time period. In the simplest form, traders look for price patterns that repeat time and again, giving them a strong insight into what might happen in the future. A more advanced way to look at it is price movement is a "reading" of the state of mind of the big traders moving the market, which give traders an insight into which direction the market will move in.
The easiest way to learn price based Forex trading?
You could look at the charts and try to discover these price patterns and try to analyze the movement of price for clues as the the big traders intentions, but I fear this will be a very long road. But I suggest you "stand on the shoulders of giants" and learn from those price action Forex traders who have gone before you. You need to find an already successful Forex trader willing to teach you their methods and learn their tested Forex trading systems.
Is books, videos or webinars the best way to learn price movement trading?
If you are lucky enough to find a successful Forex trader willing to teach you, it is important to make sure the teaching method suits your personality. The truth is, we all learn better from different formats. Some like books, others webinars and still others through video. I personally like video training best because I can watch it as many times as I need and you can see how the trading methods work under live market conditions. It is very important to learn the trading systems in a way that allows you to apply them accurately once you attempt them on your own, and that is why video is a great way to learn.
Whatever method you decide to learn price action Forex, the effort is worth the time it takes to learn. When you understand price movement, and the underlying emotions of the traders in the market, you gain an advantage over other traders and make better and more accurate trading decisions. And when trading Forex, having an edge can mean the difference between being a very successful trader and losing money.
Article Source: FxTradingStock.com
About the Author
Check out my site if you want to become aprice action Forex trader. To learn a professional traders system based primarily on price action for free, go to: 3SMA Forex System
by: Edward Lomax
Total views: 53
Word Count: 450
Date: Sat, 19 Jun 2010
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