Here is a list of the 4 tips, tricks and final thoughts to consider when trading forex price action.
Candle wicks: Pay close attention to how they form, in order to get an idea of whether there is indecision in the market. The longer and more pronounced the wick of a candle, the bigger the rejection was.
Candle bodies: Don't get caught up on whether a doji has a candle body of just a few pips. As long as it's a tiny body, the price action is telling you that the buyers and sellers were equally in control as the candle closed.
The preceding trend: Try to identify whether the market you’re analysing is in a bullish or bearish trend. This will give you a hint as to whether a doji is indicating that buyers/sellers are losing control and a possible reversal may be on the cards.
Whether they form on a support/resistance zone: Another weapon to add to your trading arsenal is the location of the doji. If a doji forms after a long bullish trend, right on top of a resistance zone, then that's another strong signal that buyers are losing control.
This brings the forex price action section of this trading guide to an end.
We now move onto the part I know you've all been waiting for - How to combine forex support/resistance zones with price action to actually make money trading this strategy.
See you tomorrow ;)
Best of probabilities to you,
FOREX BROKR | LeoFinance Blog
Daily market analysis and education.
Posted Using LeoFinance Beta