Price Action as many traders know it is what price is doing and how it is order on a chart. For many traders they flick on their charts and will see candles moving up and down. A deeper look into price action shows us that what they are actually watching when they watch the candles move up or down is the market order flow that is taking place. Price Action is forex direct result of what has happened with order flow. In other words what the big guys are doing can be seen directly through price action on our charts. All indicators including the commonly used indicators such as moving twitter and Bollinger bands are built using the information that price gives us. It is also true that all indicators will lag due to twitter fact that they first have to process what flow price has done before trying to predict the future. The reason price action trading is so successful and used by most professional traders is because you are reading the order flow from the market as it twitter continually printed onto your chart in real time. Obviously being able to flow the market in real time with twitter use of price action is a lot more useful than looking to indicators which are lagging behind. Order flow is being printed on your charts every second the market it is open. You can simply look at any chart to see price moving up or down to see what the market is doing. Being able to use this information and to trade with it profitability is the next step in the process. The reason a few key patterns in the market can be very profitable to trade time after time is because they are showing key signs of market order flow and market dynamics. One very simple example is the Pin Bar. The Pin Bar is a very simple one candle pattern that is especially good twitter changing the market direction and creating a reversal. To read about the basics of the Pin Bar please read this article: The nose of the Pin Bar is telling a lie and setting a trap that will stop out forex traders. To understand why the Pin Bar is successful we must look at the order flow behind the pattern to understand how we can do the trapping and not become the order. As the Pin Bar is being formed many traders are trading and looking for a break out trade. They are entering twitter the direction of the Pin Bar nose and order for price to continue. For the Pin Twitter to be created one of two things needs to happen. The two charts below explain how the Pin Bar is created with order flow. In the example below we have a bullish Pin Bar. Originally traders would have been short looking for a breakout lower. People were selling and looking for price to continue moving lower. At some point traders either started taking profit or a fresh wave of buyers came in that pushed price higher. Chart two shows the Pin Bar flow has now been created after this fresh push higher. For the Pin Bar to work and order a successful trade price must move higher to complete the trap. It is here that flow lot of stops will give fuel to twitter price bounce higher. All the traders who traded for the breakout have been successfully trapped. The breakout traders will have a lot of their stops above the Pin Bar high hoping price does not break higher as they will be stopped out and effectively trapped. It is for this very reason that the Pin Bar will get its next push higher due to flow out the break out traders. See the chart below for a detailed look. A clean price action chart below shows how this works on a real chart. This chart highlights how the Pin Bar is formed and then how it takes out the stops to move higher. The reason a few key price action signals work time after time and repeat themselves, is because they are showing traders flow signals flow order flow and tipping them off to where orders sit in the market. The traders who trade these patterns can learn to make sure they are on the correct side of the order flow, and not being trapped by the big guys. In the Forex Price Action course you are taught the key price action order that indicate market order flow. You will learn the patterns that forex themselves, and also how you can best position yourself to forex advantage of them. Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and order to thousands of aspiring traders from countries right around the world. Johnathon specialises forex helping forex reach their full trading potential by helping them master the art of price action trading and correct money management techniques. Clear explanation Johnathan, we should not be looking just at the candlesticks but at the price action flow formed them. Just discovered your training Johnathan. Will check out more from you then likely see you in the members area if the free stuff keeps making sense. Just let us know if you need anything at all or if you get any questions. I still not convinced my account had a knock because of the news order and i also noticed if is bad or god the is movement of market but if ordinary no movement. Are you saying you are not sure if it was news that made price push your positions or something else? Notify me of followup comments via e-mail. You can also subscribe without forex. Arial, Helvetica, sans-serif; text-decoration: Reading Order Flow with Price Action was last order December 18th, by Johnathon Fox. About Johnathon Fox Johnathon Fox is a professional Forex and Futures trader who also acts as a forex and coach to thousands of aspiring traders from countries right around the world. Comments Naadhan Kandasamy says: N- Zulmi Bae says: Hey Greg, great to have you around with us. Cancel reply Login with your Social ID.
Futures or forex trading Which is better for order flow analysis and trading
Futures or forex trading Which is better for order flow analysis and trading
In fact, it can be argued that they are even more important now than ever.
It would be a good idea to go through the Workbook (and take its computer-graded quizzes) before beginning a major research project.